Top 15 Largest Defense Budgets in the World Ranked. In 2024, the United States continues to hold the lead in global defense spending, with a staggering $968 billion allocated to its military. This accounts for 3.4% of the nation’s GDP, a level of investment that remains unmatched by any other country. The U.S. defense budget is larger than the combined spending of the next 12 largest defense budgets in the world.
Following the U.S. are China and Russia, with respective defense budgets of $235 billion and $146 billion. China’s military spending has grown exponentially in recent years, with a 566% increase since 2000, reflecting the country’s commitment to military modernization. Additionally, when adjusted for purchasing power parity (PPP), China’s defense budget is nearly $477 billion, positioning it as a formidable global military power. The country has been rapidly expanding its nuclear arsenal, with projections indicating 1,000 operational warheads by 2030.
Russia, ranked third, is also heavily investing in its military, with spending now accounting for 6% of its national income—its highest share since the Cold War. In PPP terms, Russia’s defense budget increases to $461 billion. Despite being a smaller economy, Russia maintains a nuclear arsenal that rivals the U.S., with 5,000 warheads.
The rest of the top 15 largest defense budgets include several NATO allies and major global powers. Germany ranks fourth with an $86 billion defense budget, followed by the UK at $81.1 billion. India’s defense expenditure stands at $74.4 billion, and Saudi Arabia’s budget is just under $72 billion.
Other notable countries on the list include France ($64 billion), Japan ($53 billion), South Korea ($43.9 billion), Australia ($36.4 billion), and Italy ($35.2 billion). Ukraine and Poland round out the top 15, each with a defense budget of approximately $28 billion.
As illustrated by this ranking, the U.S. remains the global leader in defense spending, outpacing the combined expenditures of the next several nations. However, countries like China and Russia have been significantly increasing their military investments, reflecting broader geopolitical tensions and a focus on military capabilities in light of regional and global security concerns.
This spending has led to the consolidation of power among a small number of defense contractors, with just five companies now receiving 86% of the Pentagon’s defense contract dollars, compared to a broader spread in the past.
Overall, the increasing defense budgets in these nations, particularly in China and Russia, highlight the growing importance of military strength and modernization in today’s geopolitical landscape. The vast disparities in defense spending demonstrate the diverse priorities of these global powers as they navigate an increasingly complex world of security threats.
