China slashes army size, ups spending

CHINESE PREMIER Li Keqiang made the announcement on the downsizing of the army in his annual work report to the NPC, which also contained the decision to hike the defence budget. CHINA LAST year increased the defence budget to $150.5 billion. China is th

Beijing, March 5: China on Monday announced a 8.1 per cent hike in its defence expenditure for this year to a whopping $175 billion, which is over three times higher than India's defence budget, even as it slashed three lakh troops, reducing the size of its 2.3-million People's Liberation Army (PLA) to just two-millionstrong force. The twin measures are part of the efforts to further advance an ambitious modernisation drive for its military.

The increase in budget was 7 per cent last year.

Chinese Premier Li Keqiang made the announcement on the downsizing of the army in his annual work report to the NPC, which also contained the decision to hike the defence budget.

China last year increased the defence budget to $150.5 billion. China is the second largest spender on defence after the US. The Pentagon has requested a budget of $686 billion in 2019, up $80 billion from 2017.

The increase of China's defence budget by 8.1 per cent this year is three times higher than India’s latest defence budget of about $46 billion.

China's budget announcement comes as President Xi Jinping, the commander in chief of the country's armed forces, focuses on increasing both the sophistication and reach of the country's military.

Though China announced its military spending at about $150.5 billion last year, observers say it is considerably higher, considering it is now building two more aircraft carriers in addition to the one already in service as well as addition of new jet fighters, including stealth fighter J-20.

The Chinese Navy also expanded its global reach with flotilla ships sailing through the far-off oceans to expand China's influence.

The official media justified the increase to $175 billion, saying although slightly higher than the previous two years, the growth rate is the third time to dip into the single digit since 2013, following 7.6 per cent in 2016 and 7 per cent in 2017.

China’s defence budget takes up a smaller share of its gross domestic product (GDP) and national fiscal expenditure compared with other major countries, Zhang Yesui, the spokesperson of the NPC told the media here. Its military spending per capita is also lower than other major countries, Zhang said.

The move to cut the size is aimed at making the world's largest army a mightier force capable of winning modern wars. The official PLA Daily said non-battle personnel were downsized.