BLUF
Rising global defence spending alongside persistent domestic spending commitments increases fiscal pressures, government debt and borrowing costs. Economic and financial risks potentially increase significantly if military expansion outpaces economic growth and budget sustainability.Learning Outcomes
- Understand the relationship between defence spending, government budgets and fiscal sustainability.
- Explain why many governments are increasing military expenditure in response to geopolitical tensions.
- Identify the economic challenges of funding defence without reducing other spending or increasing revenue.
