Largest Defense Spender in NATO: Germany surpassed the United Kingdom to rank second among all the defense spenders in the alliance.
Germany’s defense expenditure for 2024 is expected to reach $97.7 billion (£76.5 billion), compared to the UK’s $82.1 billion (£64.3 billion), the latest NATO defense expenditure data shows.
With a budget of $82.1 billion (£64.3 billion), the United Kingdom, which has hitherto maintained second place in NATO defense expenditure, now ranks third.
The UK lags much behind Germany despite great expenditure. With a forecast outlay of $967.7 billion (£757.8 billion) for 2024, the United States still rules NATO’s defence spending.
Indian Army to test Indigenous Shoulder-Fired Missiles for User Trials, Developed by DRDO
With defence expenditures of $64.3 billion (£50.3 billion) and $35.0 billion (£27.4 billion), respectively, France and Poland are in the top five NATO spenders.
| Top 5 Spenders (2024e) | Defence Expenditure (Billion USD, 2024e) | Top 5 Spenders (2023e) | Defence Expenditure (Billion USD, 2023e) |
|---|---|---|---|
| United States | 967.7 | United States | 875.6 |
| Germany | 97.7 | United Kingdom | 76.9 |
| United Kingdom | 82.1 | Germany | 73.1 |
| France | 64.3 | France | 59.4 |
| Poland | 35.0 | Italy | 33.9 |
As per UK Defence Journal, an established definition guides the calculations of these expenses based on information provided by Ally’s Ministry of Defence. Together with those of the Allies or the Alliance itself, the stated sums reflect payments made or to be made throughout the fiscal year to support the demands of national military forces.
It is noteworthy that variations in sources and national GDP projections, as well as different definitions of defense expenditure, could produce numbers that deviate from those cited by the media or released by the national government. While personnel expenses involve pensions paid to retirees, equipment expenditures consist of spending on significant equipment and research & development dedicated to such equipment.
NATO defines defense expenditures as contributions made by a national government to satisfy the requirements of its armed forces, those of allies, or the Alliance. This covers land, maritime, and air forces’ expenditures as well as combined formations like Cyber Command, Special Operations Forces, and Space Command.
Defence stock to buy: These Defense Stocks Surge with a 28% Rally Last Week
Given they are trained and ready for military activities and can be deployed abroad, it could also include a share of spending on forces like national police and coast guards.
Whether they come from the Ministry of Defence’s budget or another ministry, pension payments for retired military and civilian personnel of military departments are included. The defence spending also includes expenditures on peacekeeping and humanitarian missions, weapon destruction, donations to NATO-managed trust funds, and the costs related to inspection and control of equipment destruction.
The defense budget includes research and development expenses, including initiatives unrelated to the manufacture of equipment. Spending on NATO-shared infrastructure accounts for the net contribution of every country.
