Thursday, March 8, 2012

China's defence spending to rise 11.2%

(Financial Times) -- China plans to boost its official defence budget by 11.2 per cent this year as Beijing is balancing the modernisation of its armed forces against the need to keep military spending in line with economic development.

Defence expenditure is budgeted to rise to Rmb670.247bn ($110bn) in 2012, Li Zhaoxing, spokesman of the National People's Congress, told reporters a day before China's rubber stamp parliament opens to hear premier Wen Jiabao's budget report.

The rate of increase is slightly lower than last year's 12.7 per cent but in line with the growth trajectory over the past two decades. China has reported double-digit increases in official military spending for each year since 1989 except for 2009, when the announced growth rate dropped to 7.5 per cent.

Beijing says it is committed to keeping military spending in line with the overall pace of economic development. Read More