China’s military budget fund allocation escalated by 17.8%. Various reasons have been put forward for the same. The article below highlights the various aspects of the military spending in the country. Few think that a probable increase in the wages may have contributed to the same.
The parliament of China, the NPC or National People’s Congress announced the Budget, wherein two laws pertaining to landmark property as well as corporate income tax were introduced. However, China’s military budget seemed to steal the show.
China’s Military Spending – Far from Transparent:
The Chinese government declared that military spending for the FY 2007 was USD$44.94 billion equivalent to 350.92 billion yuan. As compared to the FY 2006, this was an increase by 17.8% or more specifically by USD$6.8 billion.
There was a lot of hue and cry about this hike in China’s military budget. There are many who feel that China’s military spending is far from transparent and that the country spends approximately two to three times more than it actually projects.
There are many countries, whose military spending far exceeds that of China’s military budget.
For instance, Britain’s military spending was USD$62.38 billion and that of France was USD$50.78. As far as United States is concerned, China’s military budget allocation of USD$44.94 billion is fraction of USD$532.8 billion of the former. China’s military spending exceeds Germany’s USD$37.5 billion and Japan’s military spending allocation of USD$42 billion. The figures mentioned above depict of the military fund allotment for the year 2007.
Reasons for the Increase in China’s Military Budget:
Different budget analysts provide different explanations for the allocation of China’s military spending. Some of the prominent reasons put forward by budget analysts are given hereunder.
It is being ascertained that the increase may be due to the fact that there has been an increase in the pensions of as many as 2.3 million officers belonging to People’s Liberation Army. Wages had also increased considerably.
Most of the military personnels at all levels of hierarchy had received a wage hike of 100%.
Various training programs were undertaken, which required sufficient funding. For the last couple of years, these military personnels survived on a modest pay packet.
Allowances had also significantly increased lately.
Expenses related to research and development, buying weapons have seen a steep rise recently.
The country has embarked upon a modernization program, which is divided into three phases. Considerable efforts have been taken to modernize China’s military force as per international standards. The three phases include- 2006-2010; 2010-2020 and 2020-2050.
The above expenses account for China’s military budget hike.
Constituents of China’s Military Budget:
The country’s military budget comprises expenses related to housing, services and wages. These approximately make up a third of the military spending.
Since, wages of military personnels do not increase on a perennial basis, the increase in the military spending ratio for the next year may not be the same.
It may be interesting to note that China’s military budget occupies the fourth position in the world so does its GDP or the gross domestic product.