What is a Military Budget?

Introduction A military budget (or military expenditure), also known as a defence budget, is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defence purposes. A pie chart showing global military expenditures by country for 2019, in US$ billions, according to SIPRI. Financing… Read More


What is a Peace Dividend?

Introduction Peace dividend was a political slogan popularised by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the light of the 1988-1991 dissolution of the Soviet Union, that described the economic benefit of a decrease in defence spending. The term was frequently used at the end of the Cold War, when… Read More

What is the Guns versus Butter Model?

Introduction In macroeconomics, the guns versus butter model is an example of a simple production-possibility frontier. It demonstrates the relationship between a nation’s investment in defence and civilian goods. The “guns or butter” model is used generally as a simplification of national spending as a part of GDP. This may be seen as an analogy… Read More

What is Military Keynesianism?

Introduction Military Keynesianism is an economic policy based on the position that government should raise military spending to boost economic growth. It is a fiscal stimulus policy as advocated by John Maynard Keynes. But where Keynes advocated increasing public spending on socially useful items (infrastructure in particular), additional public spending is allocated to the arms… Read More

Is there a Relationship between Oil Price & Military Expenditure in GCC Countries?

Research Paper Title Relationship between oil price volatility and military expenditures in GCC countries. Background Natural resource-rich countries transfer more sources to military expenditures due to extreme security concerns. As public revenues have declined due to the decline in oil prices, military expenditures have been cut in many countries. Nevertheless, this is not valid for… Read More

What is the Estimated Cost (in Real Terms) of the Difference in Total Defence Personnel Pay Expenditure per Annum between Pay 2000 & the NEM?

The New Employment Model (NEM) commenced on 01 April 2016 and it is estimated, that over the five years to 01 April 2021, there will be an additional £127.1 million of net investment in the pay bill, in real terms, above that of Pay 2000. Given the complexity of the pay bill, the profile of this… Read More