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Official figures for "National Defense" understate the full extent of military spending by omitting several important costs, such as military aid to other countries, the military share of the U.S. space program, veterans' benefits, and the military share of interest on the national debt. The figures below estimate the full cost of preparing for future wars and paying for past wars:
| $ Billions in Budget Authority | FY 1996 (Estimated) | FY 1997 (Proposed) | Direct "National Defense" Spending: Department of Defense: |
| Personnel | 69 | 70 | |
| Operation and Maintenance | 93 | 89 | |
| Weapon Procurement | 42 | 39 | |
| Weapon Research | 35 | 35 | |
| Construction | 7 | 5 | |
| Family Housing | 4 | 4 | |
| Other | 1 | 1 | |
| Department of Defense Subtotal | 252 | 243 | |
| Department of Energy (Military) | 11 | 11 | |
| Other | 1 | 1 | |
| "National Defense" Subtotal: | 263 | 254 | |
| MILITARY RELATED SPENDING: | |||
| Foreign Military Aid | 5 | 5 | |
| International Peacekeeping | 0.4 | 0.4 | |
| Space (Military) | 3 | 3 | |
| Additional Military Retirement Pay | 17 | 18 | |
| Veterans' Benefits | 39 | 39 | |
| Military Share of Interest on Debt | 167 | 166 | |
| Military-Related Subtotal | 231 | 231 | |
| Total Military and Military-Related Spending: | 494 | 485 |
Note: Totals may not add due to rounding.
Prepared by Martin Calhoun, Senior Research Analyst, April 24, 1996.
Sources: Office of Management and Budget, CDI.