The military budget, which can also be referred to as the defense budget, is the total sum of expenditure that is dedicated to the armed forces to cater for their expenses. The state or nation is in charge of planning for its allocation. The budget size can be used to predict the likelihood of occurrence of threat. It can also be used to give a rough idea on the budget expenditure of the coming year. It largely depends on the size of the economy, the financial commitments of the entity and the readiness of the state to provide for the armed forces. Having a budget plan is a fundamental aspect in any entity (Baker & Fieldstein, 2011).
The military plays a pivotal role in the protection of the country. It has a function of defending the country by combating threats that are perceived and actual. On the other hand, they help in enhancing peace and stability in the country; this in turn, improves social, economic and political situation in the country. Without the support of the military, the state may experience significant sanctions in the economy and society at large. Despite this positive impact which the military has on the economy, their large budgetary allocation has had some negative consequences in society (Baker & Fieldstein, 2011).Want an expert to write a paper for you Talk to an operator now
Sequestration is a technique that was introduced in the 2011 Budget Control Act and has allowed for the reduction of the military budget by a half- trillion dollars in the next ten years. The spending of defense will be 9% by 2015 and close to 11% lower by the year 2022. This reduction will lay off most of the military workers and lead to loss of jobs for the suppliers since their equipment will not purchased, and the service providers will not be contracted. The families of the military servants who benefit from the budget will also incur economic hardships due to the implementation of this new mechanism (Calif, 2011).
The massive military budgetary allocation affects the economy significantly. If it is cut down by approximately one billion, the country’s G.D.P will be reduced by the same amount. Even though, some individuals argue that the money will be used for other notable projects such as education and healthcare, the expenditure on the military personnel will be reduced. This reduction will be directly translated to the citizens who will receive lower wages, as a result. Consequently, other expenditures and the taxation will be increased to compensate for the lowered GDP. This implies that, the changes in the military budget have a direct effect to the citizens of America (Calif, 2011).
The military budget is a critical aspect in the development of nay state because it enhances its social, political and economic stability. Changes in the budget have a direct impact on the country at large. The country’s GDP is reduced with the reduction in the military budget hence affecting its economic growth. It increases the unemployment rate as a result of reduced job opportunities. Careful considerations should be made before implementing any changes in the military budget since it has a direct effect on the social, political and economic aspect of a state.