China's defence budget: China, which has been facing an economic slowdown, has announced to increase in the defence budget by 7.2 this year. The major announcement came amid the fact Beijing facing global challenges-- whether in the Indo-Pacific region or others where the United States is giving a befitting reply to its every attempt to alter international settings.
In a draft budget report released on Sunday morning, it is estimated that President Xi Jinping-led government will spend nearly 1.55 trillion yuan ($224 billion).
Notably, this is too low when compared to the US which had announced spending more than $800 million-- nearly four times what China announced on Sunday. Last year, it had boosted the budget by 7.1%.
Citing outgoing Premier Li Keqiang, CNN reported that the minister underscored that military spending is crucial for China in order to counter international pressure. "The armed forces should intensify military training and preparedness across the board, develop new military strategic guidance, devote greater energy to training under combat conditions and make well-coordinated efforts to strengthen military work in all directions and domains,” CNN quoted Li’s work report.
China sets economic growth at around 5%
The top economic official set this year’s growth target at “around 5%” following the end of anti-virus controls that kept millions of people at home and triggered protests. Last year’s growth in the world’s second-largest economy fell to 3%, the second-weakest level since at least the 1970s.
“We should give priority to the recovery and expansion of consumption,” Li said in a speech on government plans before the ceremonial National People’s Congress in the Great Hall of the People in central Beijing.
It is worth mentioning that China has been reeling under an economic slowdown ever since the COVID-19 pandemic engulfed the nation. Later, the strict "zero-covid" policy further plunge the economy into the worst position. Millions of people lost their jobs while several districts were forced to live under strict lockdown, resulting in more frustration among citizens.
Where does India stand?
The Union Budget for FY24 envisages a total outlay of US$ 550 billion (Rs. 45,03,097 crores). The Ministry of Defence has allocated a total Budget of US$ 72 billion (Rs. 5,93,537.64 crores), which is 13.18 % of the total budget. According to the ministry, the total Defence Budget represents an enhancement of US$ 8.35 billion (Rs. 68,371.49 crores), which is 13% more than the Budget for 2022-23.
The ministry said the increase came in line to cater to the sustenance of weapon systems, platforms including ships/aircraft and their logistics, boost fleet serviceability, the non-salary revenue/operational allocation has been increased from US$ 7.63 billion (Rs. 62,431 crores) in Budget Estimates 2022-23 to US$ 11 billion (Rs. 90,000 crores) in BE 2023-24. The Capital Allocation pertaining to modernisation and infrastructure development of the Defence Services has been increased to US$ 19.88 billion (Rs. 1,62,600 crores) representing a rise of 6.7% over FY23.
Also Read: China replies to US on COVID lab leak theory: 'Already contributed immensely to global virus tracing research'
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