Notwithstanding its slowing economy, China on Thursday hiked its defence budget by 10.1 per cent, posting a double-digit annual increase in its proposed military spending for the fifth year in a row.
Amounting to $142.2 billion, China’s defence expenditure for this year overshadows India’s defence budget of $40 billion - almost $100 billion more.
The increase in defence spending was announced by Prime Minister Li Keqiang in his work report submitted to China’s legislature, the National People’s Congress.
The hike marks an increase of about $12 billion over last year’s $132 billion, making China the second largest military spender after the United States whose national defence budget was about $600.4 billion in 2013.
Chinese official media, however, said the hike was the lowest in five years as the world’s second largest economy confronts an economic slowdown.
Chinese economy grew last year at 7.4 per cent -- the lowest in 24 years -- missing the official target of 7.5 per cent.
According to a budget report released shortly before the NPC, the government plans to raise defence budget to 886.9 billion yuan (about $144.2 billion). The previous lowest expansion in China was in 2010, when the defence budget growth target was 7.5 per cent. The budget been since seen double-digit increases, expanding 12.2 per cent last year.
The budget report did not explain the rationale behind this year’s abated growth, but said that national defence development would be coordinated with the country’s economic growth.
The report played down brewing new concerns that the world’s economic powerhouse is losing steam, stressing that China was now in a “new normal” state, where a balance ought to be stricken between growth and structural optimisation.
It said China will comprehensively strengthen modern logistics, step up national defence research and development of new and high-technology weapons and equipment, and develop defence-related science and technology industries.
“Building a solid national defence and strong armed forces is fundamental to safeguarding China’s sovereignty, security, and developmental interests,” the report said.