Yes, the debt grew but was driven by a collapsing economy and structural deficits.

The defense budget does not include many things that are defense related.  In some fiscal years the non-defense defense spending is nearly equal to that reported as defense spending.  See this article for the items not in the defense budget.

http://www.businessinsider.com/the-pentagon-budget-gives-a-skewed-idea-of-how-much-the-us-really-spends-on-defense-2015-2

My opinion is more valid because it includes items necessary to defense and I don't have a vested interest in misrepresenting the costs of maintaining the costliest military in the world.