China hikes defence budget by 7.2% to $224 bn, over thrice to that of India

China on Sunday hiked its defence budget by 7.2 per cent, marginally higher than last year, to 1.55 trillion yuan (about USD 224 billion), marking the eighth consecutive year of increase in its military spending.

China last year pegged its defence budget at 1.45 trillion yuan, a 7.1 per cent increase. This year the defence spending is increased to 1.55 trillion yuan.

However, in view of the appreciation of the dollar against the yuan, this year’s defence spending of China totalled about USD 224 billion compared to last year’s USD 230 billion.

This is the eighth consecutive year that China has announced a single-digit percentage point increase in its military budget.

In his work report presented to the opening session of the National People’s Congress (NPC) - the country's rubber-stamp parliament - outgoing Premier Li Keqiang called for the armed forces to boost combat preparedness.

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China's armed forces, with a focus on the goals for the centenary of the People's Liberation Army (PLA) in 2027, should work to carry out military operations, boost combat preparedness and enhance military capabilities so as to accomplish the tasks entrusted to them by the CPC (Chinese Communist Party ) and the people, Li said.

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, Li said.

China is the second biggest spender on defence next to the US whose defence budget for 2023 totalled USD 816 billion.

From India’s point of view, however, China’s defence budget continued to be over three times higher. India's defence budget for 2023-24 amounted to Rs 5.94 lakh crore (about USD 72.6 billion).

Aided by increasing defence budgets, the two-million-strong PLA, the world’s largest military, is increasingly getting powerful and assertive with the ever-expanding military modernisation of its Army, Navy and Air Force.

The Chinese military is headed by President Xi Jinping, who is the Chairman of the powerful Central Military Commission, the overall high command of the PLA.