TOP MILITARY SPENDERS Comparison of US and Other Nations’ Military Spending 2010 (billions of US 2010 dollars)
		IISS*	SIPRI**	PPP***
	USA	693.6	698.3	698
1.	China	111	119.5	178 - 210
2.	UK	57.8	59.6	57.6
3.	Japan	54.4	54.5	43.6
4.	France	52	59.3	49.8
5.	Russia	65.2	58.7	88.2 - 98.5
6.	Saudi Arabia	45.2	45.2	64.6
7.	Germany	44.1	45.2	40
8.	Brazil	33.4	33.6	36.2
9.	India	30.9	41.3	116
10.	South Korea	25.1	27.6
11.	Australia	23.6	24
12.	Italy	21.9	37
13.	Canada	20.2	22.8
14.	Turkey	17.4	17.5
15.	UAE	16.1	16.1
16.	Spain	14.7	15.4
17.	Israel	14	14
18.	Netherlands	11.2
19.	Colombia	10.4
20.	Iran	10.6
21.	Taiwan	9
Total for non-US group		688.2	691	674 - 716

* International Institute for Strategic Studies ** Stockholm International Peace Research Institute

*** PPP = Purchasing Power Parity, a measure that facilitates international budget comparisons by adjusting exchange rates to reflect the relative domestic buying power of national currencies.

Notes: The IISS column presents officially reported spending in USD at 2010 exchange rates, with two exceptions: China and Russia. For these, the number is an estimate of actual spending. The second column is SIPRI’s estimate of actual expenditures, also shown in USD at 2010 exchange rates. The PPP column converts estimates of actual expenditures into approximate purchasing power, mostly drawn from SIPRI data. For China and Russia, it also shows an IISS estimate of purchasing power, thus producing a range. Purchasing power calculations improve on estimates that use exchange rates alone. However, PPP ratios are based on comparisons between national economies as a whole, not the defense sectors specifically. This can overstate military purchasing power when a nation’s military sector is much more advanced than its economy overall or when a nation depends heavily on international arms purchases.

Sources: International Institute for Strategic Studies, The Military Balance 2012 (London, 2012); Stockholm International Peace Research Institute, SIPRI Yearbook 2011 (Oxford, 2011).