Data on the Bolivian defense budgets varied widely in the late 1980s. According to the International Institute for Strategic Studies, the 1988 defense budget was US$87 million. According to the United States government's The World Factbook, 1989, however, the military budget in 1988 was US$158.6 million. TheÍÍÍÍse figures were considerably higher than press reports that the defense budget fell from US$130 million in 1985 to US$94 million in 1986 but rose to roughly US$100 million in 1988.

Despite a warning by the FF.AA. commander that a cut in the 1988 funds would endanger Bolivian security and sovereignty, the Paz Estenssoro government reportedly earmarked only about US$98 million for the 1988 military budget. After meeting with the FF.AA. commander in July 1988, however, Paz Estenssoro ordered the minister of finance to give priority to the armed forces budget. The minister of national defense subsequently reported that the problem of military budget cuts had been overcome, mainly as a result of US$5 million in aid provided by the United States, and that FF.AA. personnel had received salary increases.

Data as of December 1989