Major trends in the military budgets of the United States and the Russian Federation in the 21st century

Government expenditures allocated for defence are one of the categories comparable between countries to observe and analyse long-term trends. The paper compares the defence budgets of the USA and the Russian Federation between 2000 to 2019 with the aim to analyse potential causes of fluctuations in defence spending. The purpose of the paper is to demonstrate that military budgets are dependent on a combination of various factors such as current domestic policy, the economic cycle and global security and economic issues. The work uses significant as historical milestones to analyses their impacts on the dependent variable of military budget. As these, Operation Enduring Freedom (2001), Iraq war (2003), the inauguration of the US Presidents Barack Obama and Donald Trump, the economic crisis (2007-2008), the Russian currency crisis (2014) and the Russian annexation of Crimea (2014) were identified.