Financial and Economic Data Relating to NATO Defence
Defence Expenditures of NATO Countries (1985-2008)
The figures given in Table 1 represent payments actually made or to be made during the course of the fiscal year. They are based on the NATO definition of defence expenditure. In view of the differences between this and national definitions, the figures shown may diverge considerably from those which are quoted by national authorities or given in national budgets. Research and development expenditures related to major equipment are included in equipment expenditures and pensions paid to retirees in personnel expenditures.
Defence expenditures as of 2002 and personnel figures as of 2003 have been calculated on the basis of the revised NATO definition agreed in 2004, which excluded expenditure on Other Forces from the totals reported to NATO, except in the case of those elements of Other Forces which are structured, equipped and trained to support defence forces and which are realistically deployable. Most nations have reported defence expenditures according to this new definition, and in some cases (Greece, Hungary, Italy, Luxembourg, Portugal and Turkey), this has resulted in a significant apparent decrease in defence expenditures.
|Table 1:||Total defence expenditures|
|Table 2:||Gross domestic product (GDP) and defence expenditure annual volume change|
|Table 3:||Defence expenditures as % of GDP|
|Table 4:||GDP and defence expenditures per capita|
|Table 5:||Distribution of defence expenditures by category|
|Table 6:||Armed forces|
France is a member of the Alliance but does not belong to the integrated military structure and does not participate in collective force planning. The defence data relating to France is indicative only.
According to the new budgetary reform and the financial law, from 2006 on, defence expenditure and strength figures are calculated with a new accounting methodology.
Iceland has no armed forces.
The Czech Republic, Hungary and Poland joined the Alliance in 1999.
From 2001 on, United Kingdom has changed its accounting system for defence expenditures from “cash basis” to “resource basis”.
For nine European NATO member countries, monetary values are expressed in national currencies up to 2001. As from 2002, they are expressed in Euros. From 2007 onwards, Slovenian monetary values are also expressed in Euros.
Bulgaria, Estonia, Latvia, Lithuania, Romania, the Slovak Republic and Slovenia joined the Alliance in 2004.
From 2005 onwards, monetary values for Romania and Turkey are expressed in new currency units.
To avoid any ambiguity the fiscal year has been designated by the year which includes the highest number of months: e.g. 2007 represents the fiscal year 2007/2008 for Canada and United Kingdom and the fiscal year 2006/2007 for the United States.
Because of rounding, the total figures may differ from the sum of their components.
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