Figure 1-2 Updated.
Defense Spending as a Share of the Federal Budget and Gross Domestic Product |
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- This chart updates Figure 1-2 of CBO's February 2004 web document. It compares past and projected spending for DoD with overall federal spending and the size of the U.S. economy.
- The same historical pattern characterizes DoD's spending measured as a share of federal expenditures or of gross domestic product (GDP). Both shares grew through the early 1980s. DoD's share of GDP reached a high point in 1986, and its share of federal spending peaked in 1987. Both shares declined thereafter, reaching a low point in 1999.
- Trends in those shares during the period covered by the 2005 FYDP and by CBO's projections are also similar. Both shares grew through 2004 but begin a gradual and steady decline thereafter.
- The share of GDP attributable to defense spending falls because projected real (inflation-adjusted) increases in GDP outpace the increases projected for defense outlays.
- DoD's share of federal spending declines because projected real increases in mandatory spending for programs such as Social Security and Medicare outpace increases projected for defense spending.
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