What the World’s Biggest Military Budgets Reveal About Defense Priorities

Global military budgets totaled $2.6 trillion in 2025, according to the article. The US accounted for more than a third of that total and spent nearly $1 trillion on defense, making it the world’s most expensive military. Business Insider says that figure is more than three and a half times China’s reported defense budget, the next largest.

Defense spending varies widely depending on a country’s location, interests, and military priorities. The article notes that some countries spend heavily on naval assets, advanced aircraft, missiles, or nuclear technology, while others devote large sums to maintaining conscription-based troop systems. Gian Gentile, a retired US Army colonel and senior historian at RAND, told Business Insider that some countries prioritize homeland defense while others focus on overmatch and long-range power projection.

A military budget can be measured in total dollars or as a share of GDP, which shows how much strain defense spending puts on an economy. In 2025, countries spent an average of 2.01% of GDP on defense. NATO allies agreed in 2025 to a target that aims to raise allied spending to 5% of GDP annually by 2035, including 3.5% for direct military funding and 1.5% for defense-related developments.

Business Insider emphasizes that spending statistics can clarify defense priorities but do not always translate into readiness for conflict. Mark Cancian, a senior advisor at the Center for Strategic and International Studies, said wartime spending as a share of GDP typically rises and can strain the civilian economy; Ukraine devoted over 20% of GDP to its military in 2025, the highest share globally. Cancian also noted that training, maintenance, and sustainment are often overlooked when comparing equipment and technology spending.

The ranking is based on the International Institute for Strategic Studies’ Military Balance report, which includes reported 2025 defense budget data for nearly every country. The report covers total budgets in US dollars, per capita spending, and defense budgets as a share of GDP. Business Insider notes that some countries, including North Korea, Libya, Syria, Cuba, and Afghanistan, did not publicly report their defense budgets.