Ethiopia - Military expenditure (current USD)

The latest value for Military expenditure (current USD) in Ethiopia was 496,621,100 as of 2018. Over the past 58 years, the value for this indicator has fluctuated between 785,048,300 in 1990 and 15,335,260 in 1960.

Definition: Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another).

Source: Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.

See also:

Year Value
1960 15,335,260
1961 18,555,270
1962 20,185,390
1963 27,289,520
1964 36,140,000
1965 42,900,000
1966 43,420,000
1967 37,000,000
1968 34,660,000
1969 34,420,000
1970 34,540,000
1971 36,134,240
1972 41,043,480
1973 48,433,590
1974 74,758,460
1975 125,072,500
1976 128,043,500
1977 135,048,300
1978 178,212,600
1979 276,328,500
1980 359,323,700
1981 366,980,700
1982 387,367,100
1983 408,405,800
1984 423,019,300
1985 429,444,400
1986 439,202,900
1987 476,618,400
1988 614,855,100
1989 781,521,700
1990 785,048,300
1991 529,033,800
1992 255,343,400
1993 163,850,000
1994 148,691,700
1995 122,460,100
1996 126,454,700
1997 225,417,100
1998 458,549,900
1999 703,704,900
2000 617,541,600
2001 349,808,300
2002 288,932,300
2003 278,673,200
2004 311,038,800
2005 342,066,600
2006 345,687,000
2007 360,140,300
2008 388,187,600
2009 339,627,800
2010 303,617,000
2011 332,441,800
2012 366,539,000
2013 345,064,200
2014 414,476,000
2015 442,551,600
2016 490,177,200
2017 503,158,200
2018 496,621,100

Development Relevance: Although national defense is an important function of government and security from external threats that contributes to economic development, high military expenditures for defense or civil conflicts burden the economy and may impede growth. Data on military expenditures as a share of gross domestic product (GDP) are a rough indicator of the portion of national resources used for military activities and of the burden on the economy. Data on military expenditures as a share of gross domestic product (GDP) are a rough indicator of the portion of national resources used for military activities and of the burden on the economy. As an "input" measure military expenditures are not directly related to the "output" of military activities, capabilities, or security. Comparisons of military spending among countries should take into account the many factors that influence perceptions of vulnerability and risk, including historical and cultural traditions, the length of borders that need defending, the quality of relations with neighbors, and the role of the armed forces in the body politic.

Limitations and Exceptions: Data on military expenditures are not compiled using standard definitions and are often incomplete and unreliable due to countries' reluctance to disclose military information. Even in countries where the parliament vigilantly reviews budgets and spending, military expenditures and arms transfers rarely receive close scrutiny or full, public disclosure (see Ball 1984 and Happe and Wakeman-Linn 1994). However, the Stockholm International Peace Research Institute (SIPRI) has adopted a definition of military expenditure derived from the North Atlantic Treaty Organization's (NATO) former definition (in use until 2002; see Definitions). Data on military expenditures as a share of central government expenditures use data on central government expenditures from the International Monetary Fund (IMF). Therefore the data may differ from comparable data published by national governments. In the many cases where SIPRI cannot make independent estimates, it uses the national data provided. Because of the differences in definitions and the difficulty in verifying the accuracy and completeness of data, data on military expenditures are not always comparable across countries. However, SIPRI puts a high priority on ensuring that the data series for each country is comparable over time.

Statistical Concept and Methodology: SIPRI military expenditure data includes military and civil personnel, including retirement pensions and social services for military personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, and weapons conversion and destruction. This definition cannot be applied for all countries, however, since that would require more detailed information than is available about military budgets and off-budget military expenditures (for example, whether military budgets cover civil defense, reserves and auxiliary forces, police and paramilitary forces, and military pensions). SIPRI data for the most recent years include two types of estimate which apply to all countries: (a) figures for the most recent years are for adopted budgets, budget estimates or revised estimates, and are revised, more often than not, in subsequent years; and (b) the deflator used for the latest year in the series is an estimate. SIPRI's primary source of military expenditure data is official data provided by national governments. These data are derived from budget documents, defense white papers, and other public documents from official government agencies, including government responses to questionnaires sent by SIPRI, the UNODA, or the Organization for Security and Co-operation in Europe. Secondary sources include international statistics, such as those of NATO and the IMF's Government Finance Statistics Yearbook. Other secondary sources include country reports of the Economist Intelligence Unit, country reports by IMF staff, and specialist journals and newspapers. The SIPRI military expenditure figures are presented on a calendar-year basis. The only exception is the USA, for which statistics report data on a fiscal-year basis. Calendar-year data are calculated on the assumption of an even rate of expenditure throughout the fiscal year.

Aggregation method: Weighted average

Periodicity: Annual

General Comments: Data for some countries are based on partial or uncertain data or rough estimates. For additional details please refer to the military expenditure database on the SIPRI website: https://sipri.org/databases/milex

Classification

Topic: Public Sector Indicators

Sub-Topic: Defense & arms trade