The level of expenditure on Defence in any particular country is influenced by a variety of factors, including that country's political and security environment, its history, demography and economy. The most recent available statistics on Defence expenditure in the EU indicate that in 2007 Defence spending in Ireland, as a percentage of GDP, was the lowest in the E.U. at 0.53%. In 2008 Defence spending in Ireland represented 0.6% of GDP.
Expenditure under the Defence and Army Pensions Votes increased from €702m in 1999 to an estimated expenditure of €1,031m in 2009 i.e. an increase of 47%. During the same period the CPI increased by about 34%. There has been a very significant investment in infrastructure and equipment for the Defence Forces in recent years. This was made possible by the Government's decision that pay savings arising from personnel reductions in the Defence Forces, along with proceeds from the sale of surplus properties, would be fully reallocated for investment in modern facilities and equipment.