Budget surprise for China's army
By Willy Wo-Lap Lam, CNN Senior China Analyst, in Hong Kong
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China's actual military spending is believed to be as much as four times the official figure.
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BEIJING, China (CNN) -- China has announced its lowest military spending hike in 13 years, recommending a budget increase of 9.6 percent for the People's Liberation Army (PLA).
The hike will lift the spending power of the PLA to 185.3 billion yuan ($22.4 billion), down eight percent from last year, but still 5 percent higher than the overall growth of government expenditure for this year.
While addressing the second day of the National People's Congress on Thursday, Finance Minister Xiang Huaicheng said the outlay for the PLA was determined with a view to "raising the combat effectiveness of the armed forces in fighting wars to defend the country with the use of high technology."
In his opening address to the NPC on Wednesday, out-going Premier Zhu Rongji praised the armed forces for having successfully implemented "the strategy of strengthening itself through science and technology."
Zhu also said modernization and standardization of the PLA had led to a rise in the "country's military capability and the army's defensive combat readiness."
The PLA has enjoyed an annual budget increase in double digits for the past 12 years.
Military analysts in Beijing said while this year's expenditure increase was much lower than the 17.6 percent awarded for 2002 and 2001, the publicized budget only represented about one third of actual outlays.
For example, funds for the research and development of weapons, including procurement of hardware from Russia, are not covered by the regular budget.
Moreover, the expenditures for the semi-military People's Armed Police have never been made known to the public.
Since the late 1990s, the PLA has dramatically improved its jet fighters, submarines and missiles, including those that target aircraft carriers.
Out-going President Jiang Zemin is tipped to remain head of the state Central Military Commission for at least two to three more years.
Jiang, 76, has in recent speeches reiterated the imperative of raising the technological level of the PLA, particularly its navy and air force.
