Efficiency of Defence Expenditure Management in the Context of Escalating Security Threats

Purpose: This article aims to assess the effectiveness of defence expenditure management in the context of increasing threats to state security.In particular, it analyses the mechanisms of planning, allocation, and control of budget funds in the defence sector and their adaptation to current and future strategic challenges.Design/Methodology/Approach: The article is based on secondary data analysis of the defence budgets of the European Union and NATO countries, including Poland.Methods of comparative analysis, strategic documents analysis, and case studies of good practices in defence finance management were used.The research problem was formulated: Does the increase in defence spending in EU and NATO countries translate into a real strengthening of defence capabilities, or do management and strategic planning deficits limit their effectiveness?The hypothesis assumes that effective management of defence expenditure, based on multi-annual programming, risk analysis and efficiency audits, has a greater impact on improving the state's defence capabilities than the nominal increase in the defence budget itself. Results:The study showed that although defence expenditures in European countries are systematically increasing, the effectiveness of their management is still limited by the lack of long-term planning, fragmentation of purchases, and insufficient connection of budgeting with risk analysis.Countries that implement multi-annual programming and efficiency audit mechanisms achieve higher-quality investments.Practical implications: The analysis results can be used as a basis for formulating recommendations for decision-makers responsible for defence policy.Proposed directions for improvements include, among others, the development of managerial competencies in defence administration, integration of budget planning with analysis of threat scenarios, and