China on Saturday announced that it will increase the defence budget by 7.1 percent this year. This will result in China’s defence spending shooting up to USD230 billion in 2023 from USD209 billion in 2021.
Chinese Premier Li Keqiang justified the increase in budget citing the defence of the country’s security and territorial sovereignty.
“Government at all levels must give strong support to the development of national defence and the armed forces, so unity between the military and government and between the military and the people will remain rock solid,” Premier Li told the National People's Congress (NPC).
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This increased budget allocation signals towards mordernisation of the Chinese military as well as an arms and technology race with the United States.
This is apparent from Premier Li’s statement who has called for an increase in indigenous defence technology innovation through research and development.
This hike is the largest since the one proposed in 2019 when a 7.5 percent increase was proposed.
China has been massively investing in developing indigenous stealth jets and aircraft carriers to boost its offensive capabilities and increase the combat abilities of the PLA.
Last year, the hike in defence spending was 6.8 percent. In 2021, China’s defence spending for the first time crossed USD200 billion.
For comparison, India’s defence budget for the year 2022 is around USD 54 billion (excluding provision of defence pensions).
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In line with the principle of Atmanirbhar Bharat (self-sufficiency), impetus as provided in the 2022 Budget to the development of indigenous defence technology and manufacturing ecosystem.
“68 per cent of the capital procurement budget will be earmarked for domestic industry in 2022-23, up from 58 per cent in 2021-22,” the Budget read.
Further, in a groundbreaking announcement, research and development (R&D) in defence technology will be opened up to the private industries, start-ups and academia for which 25 percent of the R&D budget has been earmarked.
The Joe Biden Administration will demand the Congress over USD 770 billion for the year 2022 for modernization of its military, as per a report by Reuters.
