Many countries are not in danger. Meanwhile, they have really good ideas about how to spend their government revenues on non-military purposes.
Would it make sense for these countries to go into a full and overt training mode, giving up the claim that their military is combat ready?
I'm thinking of countries such as Sweden, Austria, Belgium, Portugal, New Zealand, South Africa or Bulgaria.
How would this look like, assuming a country of small but noticeable size such as Belgium?
First, it would require some diplomacy. NATO members would tell their allies about fiscal troubles and a military in training mode without readiness until further notice.
Next, all procurement programs would need to be adjusted and the personnel system would need to be adjusted. The ability to expand the military into a ready and capable force of substantial size would become the mission within the constraints of the given (small) budget.
The air force could operate a squadron of old (so called "4th generation") combat aircraft until it receives the cheapest modern combat aircraft (Gripen?) as replacement for worn-out aircraft. The pilots would receive civilian, multinational and allied foreign training. It would make no sense to operate an own pilot training system at such a small scale.
The navy would probably have two multi-purpose frigates, two mine countermeasure boats and two conventional submarines. This should suffice to keep the personnel informed about modern naval tech and tactics. Major exercises would happen together with allied forces.
The army would probably keep a few battalions of heavy, light and para/mountain troops as well as a few artillery units. The overall size would probably amount to a small division. The forces could -if the country is allied- be under command of a bi-national army corps, in order to offer corps operations training to some officers.
The personnel system with its focus on the ability to expand would need to focus on intelligent, promising recruits as well as many shortly-trained reserve NCOs and reserve junior officers. The active forces would see many of the enlisted personnel slots occupied by soon-to-be reserve personnel of junior NCO ranks. The remaining enlisted personnel would basically be soon-to-be (reserve or active) NCOs. The skill in training personnel would be highly valued and fostered through training and education (in adult education).
The only missions outside of allied territories would be either observer missions with 2-4 personnel each or embassy emergency protection missions.
Equipment procurement would be oriented towards standard equipment that's suitable for intense training use (so for example no T-90 MBTs) and the operating costs should be low if possible (=low fuel consumption, low training ammunition prices, low spare parts prices).
The overall effect would be that modest savings could be coupled with the ability to expand to a considerable and effective force within few years. This might look unsatisfactory in the short term, but is likely superior in the long term. An underfunded and thus demoralised force that pretends to be combat-ready but is in reality hollowed-out would in my opinion be an inferior alternative use for taxpayer money.