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China Announces Hike in Military Spending
BEIJING (AP) - China on Saturday unveiled an 11.6 percent increase in its military budget for 2004 even as it announced heavy new spending on its highest-priority domestic issue - improving life for millions in its vast, poor countryside.
The budget increase for the world's largest military came amid tensions with rival Taiwan and, despite official promises to focus on fighting rural poverty and improving public health, was even bigger than last year's. Overall, the government plans to increase spending by 7 percent over last year's levels, the finance minister. Amid mounting alarm over growing deficits and China's government debt, he said this year's budget shortfall would hold steady at the 2003 level. The figures came in a budget report prepared for delivery by Finance Minister Jin Renqing at the National People's Congress, the country's nominal legislature. He didn't give a total for military spending, but said outlays this year would increase by $2.6 billion. Last year's announced figure was $22.4 billion, though the actual figure is believed higher.
| Shades of old Soviet Union budgeting. |
The announcement puts China back into double-digit defense increases - a pattern it had adhered to for 13 straight years until last year's 9.6 percent increase.
Posted by: Steve White 2004-03-06 |
