Abstract
This paper examines the location of military expenditures in the national income accounts of Czechoslovakia, Hungary, and Poland, estimates expenditures for these countries, and compares these estimates with published defense budgets. Expenditures on military personnel are constructed using military force estimates, and cost-of-living and wage data. Military procurement estimates are constructed from input-output tables and trade data. The sum of expenditure estimates by category is roughly of the same size as the published budgets suggesting that reported military spending may reflect almost all of actual spending. This finding contrasts with the Soviet case where actual spending is a multiple of the reported budgets.
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