$895 B vs. $148 M: The Eye-Popping Spread Between NATO’s Biggest and Smallest Defense Budgets

Key Points

Military budgets of NATO members have been scrutinized and criticized recently for their contributions to the overall alliance
The United States has historically led NATO in terms of military spending
With a new round of elections around the world taking place, expectations for NATO military spending may be shifting
With global uncertainty at an all time high and potential conflicts affecting NATO nations, now is the best time to speak with a financial advisor to make sure your portfolio is positioned to weather the storm. Consultations are free and take just a few minutes, click here to get started now.

In recent years, NATO members have come under fire for not pulling their weight financially when it comes to military spending. It’s no secret that the United States has historically led the pack in terms of its defense budget, and with the new administration comes new expectations that NATO nations contribute more equally to the alliance. It’s not just the U.S., recent elections around the world have demonstrated a shift in how nations view their militaries and spending overall. Here, 24/7 Wall St. is taking a closer look at the NATO nations that have the smallest defense budgets in the alliance. (How Big Is America’s Defense Budget Compared to the Rest of the World?)

To determine the NATO countries with the smallest military defense budgets, 24/7 Wall St. reviewed the 2025 Military Strength Ranking from Global Firepower, an annually updated defense-related statistics website with information on 145 countries. Global Firepower ranked 145 countries based on their PowerIndex, a composite of over 60 measures in categories such as military might, financials, logistical capability, and geography. The smaller the PowerIndex value the more powerful a nation’s theoretical conventional fighting capability is. We ranked these countries based on their military defense budget. We also included supplemental information regarding purchasing power parity, foreign exchange/gold reserves, external debt, a composition of military assets, as well as the overall military strength score..

Here is a look at the countries with the smallest defense budgets in NATO:

Why Are We Covering This?

Understanding NATO’s military dynamics is important when looking at the state of global security. Since its inception, NATO has played a pivotal role in shaping international relations through its collective defense and security framework. As geopolitical tensions continue to rise and new threats emerge, knowing and understanding NATO’s military capabilities is important for getting a clearer picture of the world stage. Not to mention, countries like the United States, the United Kingdom, and Germany, among others, contribute significantly to NATO’s military strength, influencing global power balances and regional stability.

32. United States

Military defense budget: $895,000,000,000
Foreign exchange and gold reserves: $773,426,000,000
Purchasing power parity: $24,662,000,000,000
External debt: $22,303,546,100,000
Total military aircraft: 13,043
Total military vehicles: 391,963
Total naval vessels: 440
Military strength score and world rank: 0.0744 – #1 out of 145

These finances go to pay for the United States’s 2,127,500 total military personnel, which is composed of 1,328,000 active personnel and 799,500 reserves. It also has a total population of 341.96 million.

31. United Kingdom

Military defense budget: $71,500,540,000
Foreign exchange and gold reserves: $177,915,000,000
Purchasing power parity: $3,700,000,000,000
External debt: $9,593,749,000,000
Total military aircraft: 631
Total military vehicles: 38,200
Total naval vessels: 109
Military strength score and world rank: 0.1785 – #6 out of 145

These finances go to pay for the United Kingdom’s 1,108,860 total military personnel, which is composed of 184,860 active personnel and 924,000 reserves. It also has a total population of 68.46 million.

30. France

Flag of France on military uniform. Army, troops, soldier (collage).

Military defense budget: $55,000,000,000
Foreign exchange and gold reserves: $240,792,000,000
Purchasing power parity: $3,764,000,000,000
External debt: $6,992,104,900,000
Total military aircraft: 976
Total military vehicles: 110,932
Total naval vessels: 129
Military strength score and world rank: 0.1878 – #8 out of 145

These finances go to pay for France’s 376,000 total military personnel, which is composed of 200,000 active personnel, 26,000 reserves, and 150,000 paramilitary forces. It also has a total population of 68.37 million.

29. Germany

Germany military | german flag on a german soldier desert uniform

Military defense budget: $50,000,000,000
Foreign exchange and gold reserves: $322,700,000,000
Purchasing power parity: $5,230,000,000,000
External debt: $6,238,609,300,000
Total military aircraft: 584
Total military vehicles: 83,260
Total naval vessels: 61
Military strength score and world rank: 0.2601 – #14 out of 145

These finances go to pay for Germany’s 215,600 total military personnel, which is composed of 181,600 active personnel and 34,000 reserves. It also has a total population of 84.12 million.

28. Poland

Poland military | Polish army with machine guns in field uniform.

Military defense budget: $48,700,000,000
Foreign exchange and gold reserves: $193,783,000,000
Purchasing power parity: $1,616,000,000,000
External debt: $386,947,000,000
Total military aircraft: 479
Total military vehicles: 23,138
Total naval vessels: 62
Military strength score and world rank: 0.3776 – #22 out of 145

These finances go to pay for Poland’s 602,100 total military personnel, which is composed of 202,100 active personnel, 350,000 reserves, and 50,000 paramilitary forces. It also has a total population of 38.75 million.

27. Turkey

Military defense budget: $47,000,000,000
Foreign exchange and gold reserves: $140,858,000,000
Purchasing power parity: $2,936,000,000,000
External debt: $294,441,000,000
Total military aircraft: 1,083
Total military vehicles: 61,173
Total naval vessels: 182
Military strength score and world rank: 0.1902 – #9 out of 145

These finances go to pay for Turkey’s 883,900 total military personnel, which is composed of 355,200 active personnel, 378,700 reserves, and 150,000 paramilitary forces. It also has a total population of 84.12 million.

26. Canada

Military defense budget: $41,000,000,000
Foreign exchange and gold reserves: $117,551,000,000
Purchasing power parity: $2,238,000,000,000
External debt: $2,337,375,700,000
Total military aircraft: 351
Total military vehicles: 21,704
Total naval vessels: 73
Military strength score and world rank: 0.5179 – #28 out of 145

These finances go to pay for Canada’s 100,500 total military personnel, which is composed of 68,000 active personnel, 27,000 reserves, and 5,500 paramilitary forces. It also has a total population of 38.79 million.

25. Italy

Military defense budget: $30,890,000,000
Foreign exchange and gold reserves: $247,396,000,000
Purchasing power parity: $3,097,000,000,000
External debt: $2,750,000,000,000
Total military aircraft: 729
Total military vehicles: 73,480
Total naval vessels: 196
Military strength score and world rank: 0.2164 – #10 out of 145

These finances go to pay for Italy’s 289,000 total military personnel, which is composed of 165,500 active personnel, 18,500 reserves, and 105,000 paramilitary forces. It also has a total population of 60.96 million.

24. Netherlands

Military defense budget: $27,000,000,000
Foreign exchange and gold reserves: $69,830,000,000
Purchasing power parity: $1,240,000,000,000
External debt: $4,779,954,300,000
Total military aircraft: 120
Total military vehicles: 2,755
Total naval vessels: 64
Military strength score and world rank: 0.6412 – #36 out of 145

These finances go to pay for the Netherlands’s 53,145 total military personnel, which is composed of 41,380 active personnel, 6,765 reserves, and 5,000 paramilitary forces. It also has a total population of 17.77 million.

23. Spain

Military defense budget: $23,397,000,000
Foreign exchange and gold reserves: $103,089,000,000
Purchasing power parity: $2,242,000,000,000
External debt: $2,572,738,300,000
Total military aircraft: 461
Total military vehicles: 17,626
Total naval vessels: 152
Military strength score and world rank: 0.3242 – #17 out of 145

These finances go to pay for Spain’s 226,902 total military personnel, which is composed of 133,282 active personnel, 15,150 reserves, and 78,470 paramilitary forces. It also has a total population of 47.28 million.

22. Sweden

Military defense budget: $13,000,000,000
Foreign exchange and gold reserves: $60,863,000,000
Purchasing power parity: $676,353,000,000
External debt: $1,002,448,700,000
Total military aircraft: 169
Total military vehicles: 6,795
Total naval vessels: 308
Military strength score and world rank: 0.4835 – #27 out of 145

These finances go to pay for Sweden’s 82,300 total military personnel, which is composed of 24,400 active personnel, 32,900 reserves, and 25,000 paramilitary forces. It also has a total population of 10.59 million.

21. Belgium

Military defense budget: $10,200,000,000
Foreign exchange and gold reserves: $40,813,000,000
Purchasing power parity: $751,592,000,000
External debt: $1,449,264,300,000
Total military aircraft: 108
Total military vehicles: 4,606
Total naval vessels: 9
Military strength score and world rank: 1.2564 – #62 out of 145

These finances go to pay for Belgium’s 31,400 total military personnel, which is composed of 25,000 active personnel and 6,400 reserves. It also has a total population of 11.98 million.

20. Norway

Military defense budget: $9,710,000,000
Foreign exchange and gold reserves: $80,459,000,000
Purchasing power parity: $449,528,000,000
External debt: $716,144,000,000
Total military aircraft: 97
Total military vehicles: 6,552
Total naval vessels: 43
Military strength score and world rank: 0.6811 – #38 out of 145

These finances go to pay for Norway’s 63,250 total military personnel, which is composed of 23,250 active personnel and 40,000 paramilitary forces. It also has a total population of 5.510 million.

19. Romania

Romanian Defence Forces Join In Combative Training On Black Sea

Military defense budget: $9,700,000,000
Foreign exchange and gold reserves: $73,000,000,000
Purchasing power parity: $772,107,000,000
External debt: $132,000,000,000
Total military aircraft: 140
Total military vehicles: 10,774
Total naval vessels: 20
Military strength score and world rank: 0.8984 – #51 out of 145

These finances go to pay for Romania’s 151,300 total military personnel, which is composed of 81,300 active personnel, 55,000 reserves, and 15,000 paramilitary forces. It also has a total population of 18.15 million.

18. Denmark

Military defense budget: $7,225,466,250
Foreign exchange and gold reserves: $109,371,000,000
Purchasing power parity: $428,385,000,000
External debt: $555,500,000,000
Total military aircraft: 117
Total military vehicles: 3,856
Total naval vessels: 50
Military strength score and world rank: 0.8109 – #45 out of 145

These finances go to pay for Denmark’s 83,000 total military personnel, which is composed of 20,000 active personnel, 12,000 reserves, and 51,000 paramilitary forces. It also has a total population of 5.973 million.

17. Finland

Military defense budget: $6,779,661,000
Foreign exchange and gold reserves: $16,929,000,000
Purchasing power parity: $321,126,000,000
External debt: $660,000,000,000
Total military aircraft: 163
Total military vehicles: 11,704
Total naval vessels: 264
Military strength score and world rank: 0.8437 – #48 out of 145

These finances go to pay for Finland’s 947,800 total military personnel, which is composed of 24,000 active personnel, 870,000 reserves, and 53,800 paramilitary forces. It also has a total population of 5.626 million.

16. Czechia

Military defense budget: $6,750,000,000
Foreign exchange and gold reserves: $148,379,000,000
Purchasing power parity: $519,007,000,000
External debt: $211,200,000,000
Total military aircraft: 99
Total military vehicles: 6,340
Total naval vessels: 0
Military strength score and world rank: 0.9994 – #53 out of 145

These finances go to pay for Czechia’s 32,200 total military personnel, which is composed of 28,000 active personnel and 4,200 reserves. It also has a total population of 10.84 million.

15. Greece

Military defense budget: $6,500,000,000
Foreign exchange and gold reserves: $13,608,000,000
Purchasing power parity: $375,780,000,000
External debt: $550,000,000,000
Total military aircraft: 558
Total military vehicles: 61,888
Total naval vessels: 192
Military strength score and world rank: 0.5337 – #30 out of 145

These finances go to pay for Greece’s 419,050 total military personnel, which is composed of 142,700 active personnel, 221,350 reserves, and 55,000 paramilitary forces. It also has a total population of 10.46 million.

14. Portugal

Military defense budget: $4,627,000,000
Foreign exchange and gold reserves: $53,710,000,000
Purchasing power parity: $529,901,000,000
External debt: $399,395,000,000
Total military aircraft: 115
Total military vehicles: 10,828
Total naval vessels: 194
Military strength score and world rank: 0.6856 – #39 out of 145

These finances go to pay for Portugal’s 260,400 total military personnel, which is composed of 24,000 active personnel, 211,700 reserves, and 24,700 paramilitary forces. It also has a total population of 10.64 million.

13. Hungary

Military defense budget: $4,576,000,000
Foreign exchange and gold reserves: $45,719,000,000
Purchasing power parity: $388,906,000,000
External debt: $137,500,000,000
Total military aircraft: 69
Total military vehicles: 7,797
Total naval vessels: 0
Military strength score and world rank: 1.0259 – #55 out of 145

These finances go to pay for Hungary’s 76,600 total military personnel, which is composed of 41,600 active personnel, 20,000 reserves, and 15,000 paramilitary forces. It also has a total population of 9.856 million.

12. Slovakia

Military defense budget: $2,656,000,000
Foreign exchange and gold reserves: $11,288,000,000
Purchasing power parity: $213,053,000,000
External debt: $127,600,000,000
Total military aircraft: 41
Total military vehicles: 3,074
Total naval vessels: 0
Military strength score and world rank: 1.3978 – #71 out of 145

These finances go to pay for Slovakia’s 19,500 total military personnel, which is composed entirely of its active-duty personnel. It also has a total population of 5.564 million.

11. Lithuania

Military defense budget: $2,388,900,000
Foreign exchange and gold reserves: $6,168,000,000
Purchasing power parity: $132,712,000,000
External debt: $44,000,000,000
Total military aircraft: 9
Total military vehicles: 1,263
Total naval vessels: 14
Military strength score and world rank: 1.9075 – #88 out of 145

These finances go to pay for Lithuania’s 141,150 total military personnel, which is composed of 23,000 active personnel, 104,000 reserves, and 14,150 paramilitary forces. It also has a total population of 2.628 million.

10. Estonia

Military defense budget: $1,463,360,000
Foreign exchange and gold reserves: $2,593,000,000
Purchasing power parity: $57,377,000,000
External debt: $26,400,000,000
Total military aircraft: 5
Total military vehicles: 1,685
Total naval vessels: 8
Military strength score and world rank: 2.2917 – #107 out of 145

These finances go to pay for Estonia’s 96,500 total military personnel, which is composed of 7,700 active personnel, 78,800 reserves, and 10,000 paramilitary forces. It also has a total population of 1.194 million.

9. Bulgaria

Military defense budget: $1,373,232,000
Foreign exchange and gold reserves: $46,334,000,000
Purchasing power parity: $214,061,000,000
External debt: $27,138,500,000
Total military aircraft: 65
Total military vehicles: 4,914
Total naval vessels: 36
Military strength score and world rank: 1.2563 – #61 out of 145

These finances go to pay for Bulgaria’s 40,000 total military personnel, which is composed of 37,000 active personnel and 3,000 reserves. It also has a total population of 6.783 million.

8. Croatia

Military defense budget: $1,176,000,000
Foreign exchange and gold reserves: $3,176,000,000
Purchasing power parity: $159,305,000,000
External debt: $55,000,000,000
Total military aircraft: 67
Total military vehicles: 2,848
Total naval vessels: 30
Military strength score and world rank: 1.5074 – #75 out of 145

These finances go to pay for Croatia’s 36,425 total military personnel, which is composed of 14,325 active personnel, 20,100 reserves, and 2,000 paramilitary forces. It also has a total population of 4.150 million.

7. Latvia

Military defense budget: $1,138,000,000
Foreign exchange and gold reserves: $4,957,000,000
Purchasing power parity: $71,154,000,000
External debt: $44,180,400,000
Total military aircraft: 7
Total military vehicles: 1,848
Total naval vessels: 18
Military strength score and world rank: 2.1246 – #99 out of 145

These finances go to pay for Latvia’s 65,750 total military personnel, which is composed of 17,250 active personnel, 36,000 reserves, and 12,500 paramilitary forces. It also has a total population of 1.801 million.

6. Slovenia

Military defense budget: $886,860,000
Foreign exchange and gold reserves: $2,370,000,000
Purchasing power parity: $102,036,000,000
External debt: $55,000,000,000
Total military aircraft: 39
Total military vehicles: 1,428
Total naval vessels: 2
Military strength score and world rank: 2.1016 – #96 out of 145

These finances go to pay for Slovenia’s 38,300 total military personnel, which is composed of 7,300 active personnel, 26,000 reserves, and 5,000 paramilitary forces. It also has a total population of 2.098 million.

5. Luxembourg

Military defense budget: $726,092,925
Foreign exchange and gold reserves: $2,977,000,000
Purchasing power parity: $88,533,000,000
External debt: $4,730,000,000,000
Total military aircraft: 1
Total military vehicles: 182
Total naval vessels: 0
Military strength score and world rank: 2.6415 – #117 out of 145

These finances go to pay for Luxembourg’s 1,000 total military personnel, which is composed entirely of its active-duty personnel. It also has a total population of 671,254.

4. Albania

Military defense budget: $558,862,420
Foreign exchange and gold reserves: $6,455,000,000
Purchasing power parity: $49,592,000,000
External debt: $7,312,000,000
Total military aircraft: 19
Total military vehicles: 1,796
Total naval vessels: 19
Military strength score and world rank: 1.6815 – #78 out of 145

These finances go to pay for Albania’s 9,100 total military personnel, which is composed of 6,600 active personnel, 2,000 reserves, and 500 paramilitary forces. It also has a total population of 3.107 million.

3. North Macedonia

Military defense budget: $388,421,700
Foreign exchange and gold reserves: $5,015,000,000
Purchasing power parity: $42,444,000,000
External debt: $11,000,000,000
Total military aircraft: 20
Total military vehicles: 1,108
Total naval vessels: 0
Military strength score and world rank: 2.4042 – #112 out of 145

These finances go to pay for North Macedonia’s 7,250 total military personnel, which is composed of 9,000 active personnel, 60,000 reserves, and 3,500 paramilitary forces. It also has a total population of 2.136 million.

2. Iceland

Iceland | Reykjavik capital city of iceland

Military defense budget: $312,400,000
Foreign exchange and gold reserves: $5,809,000,000
Purchasing power parity: $26,155,000,000
External debt: $22,000,000,000
Total military aircraft: 0
Total military vehicles: 150
Total naval vessels: 0
Military strength score and world rank: 3.5181 – #135 out of 145

Iceland also has a total population of 364,036.

1. Montenegro

Military defense budget: $148,100,000
Foreign exchange and gold reserves: $1,574,000,000
Purchasing power parity: $17,115,000,000
External debt: $2,958,500,000
Total military aircraft: 11
Total military vehicles: 471
Total naval vessels: 14
Military strength score and world rank: 2.9216 – #127 out of 145

These finances go to pay for Montenegro’s 7,850 total military personnel, which is composed entirely of its active-duty personnel. It also has a total population of 599,849.

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Author: Chris Lange

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