China’s defence budget to cross $200 billion Â
Context: China’s defence budget will for the first time cross $200 billion with the government announcing a 6.8% hike in defence spending for 2021.
Details:
- The hike is only a slight raise from the 6.6% increase announced in 2020 amid the pandemic, which was the lowest increase in many years. The defence budget saw double-digit increases until 2015, and was hiked 7.5% in 2019.
- The budget for 2021 was announced as 35 trillion yuan ($209 billion), up from 1.27 trillion Yuan ($179 billion) last year.
India vs China:
- This will take China’s defence spending to more than four times India’s $49.75 billion budget, not including pensions.
- India’s budget last month announced a modest 48% hike in total defence spending to Rs. 4.78 lakh crore ($65.7 billion) including pensions, or Rs. 3.62 lakh crore ($49.75 billion) minus pensions.
- In China, spending on pensions is not entirely from the defence budget, as it is also shared by the Ministry of Civil Affairs and provincial (state) governments, although part of the budget’s personnel allocation goes towards pensions.
- China also spends less than India on import acquisitions, and its outlay on capital is harder to ascertain considering the defence budget does not fully account for the military spends by China’s vast military industries, most of which are state-controlled.
Modernisation:
- China’s defence spending has in recent years evolved to reflect its on-going modernisation of the People’s Liberation Army (PLA), with a shift away from the traditionally dominant army and a greater share going to the PLA Navy, the Rocket Force which is in charge of missiles, and the Strategic Support Force, which includes cyber warfare.
- This year, China will launch its third aircraft carrier, which will be its second homegrown one. The PLA Navy in 2019 unveiled its first homegrown aircraft carrier, and two more are under construction.
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