China hikes defence budget by a mere 7%
BEIJING: China has increased its defence budget by 7% for 2017, the lowest increase in seven years and second year in row that the hike was below the double digit mark.
In real terms, the defence budget of the world’s largest armed forces, the People’s Liberation Army (PLA) is likely to be close to the $145 billion-mark.
China’s 2016 defence budget was around 954.35 billion Yuan ($138.40 billion) and much smaller compared to that of the US, which announced a 10% increase in its defence outlay earlier this week.
Reports say that China understates its defence expenditure, which is closely followed around the world, especially by its neighbours with many of whom Beijing has maritime disputes.
The announcement was made Saturday in the run-up to the beginning of China’s rubberstamp Parliament, the National People’s Congress (NPC) on Sunday when Premier Li Keqiang will release the actual numbers.
Fu Ying, NPC’s spokesperson, said the increase is in line with China’s economic development and defence needs.
“The fresh raise could be the country’s slowest defence budget rise in more than a decade, and mark the second time that defence budget dip to single-digit increase since 2010. In 2009, the figure was about 15%,” official news agency Xinhua reported
Fu said China’s defence spending accounts for about 1.3% of the country’s GDP, as compared with Nato members’ pledge to dedicate at least 2% of GDP to defence. “You should ask them what their intentions are,” Fu said at Saturday’s press meet.
Last year, China’s finance ministry had said that the reduced hike was in line with the country’s economic slowdown
“We will support efforts to deepen the reform of national defence and the amed forces and strengthen the military in all respects so that its more revolutionary, modern and standardised. We will promote integrated development of the economy and national defence,” the finance ministry had said last year.