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The record increase in military spending comes at a time when the U.S. economy is in limbo and inflation is at its highest level in 40 years, at an annual rate of 8.5%.
The U.S. House Armed Services Committee on Wednesday backed a proposal to increase the U.S. Defense Department spending by $37 billion, this on top of the record $773 billion proposed by U.S. President Joe Biden, British news agency, Reuters, reported.
As the report indicated, the Senate's approval paved the way for giving a budget worth at least US$ 810 billion to the Pentagon next year, after the aforementioned committee backed a US$ 45 billion increase in its version of the bill.
The U.S. House and Senate will make the final decision on the increase when they meet on the bill at a date yet to be decided.
The $37 billion amendment to the National Defense Authorization Act (NDAA) passed the House Armed Services Committee with 42 votes in favor and 17 against, while some Democrats as well as Republicans on the same committee favored a larger increase.
The record increase in military spending comes at a time when the U.S. economy is in limbo and inflation is at its highest level in 40 years, at an annual rate of 8.5%. According to formal reports, Americans are having a difficult time buying necessities, mainly food and fuel.
Economists estimate that the measure would not have a significant immediate effect on inflation, but has the potential to cause a full percentage point decline in about a year.
The main reason for this uncontrollable inflation in both the U.S. and Europe is the application of severe Western sanctions on Russia over Ukraine, which could reportedly exacerbate inflation even further.