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Increased defense budget aims to benefit military personnel, official

www.chinanews.cn 2006-03-07 17:53:13

Chinanews, March. 7 �C In an interview with Xinhua News Agency, director
of the General Logistics Department of the People's Liberation Army
(PLA), Liao Xilong said on Monday that compared with major countries in
world, China's national defense budget was small, both in absolute number
and in its proportion to GDP figure.
He said that China's national defense budget was in accordance with the
state's national defense policy and the increase of national defense
budget in 2006 mainly aimed at improving the living conditions of the
military personnel.
According to the 2005-2006 government budget report presented to the
fourth session of the tenth National People's Congress, China's national
defense budget in 2006 is expected to reach 280.7 billion yuan,
increasing 14.7% as previous year.
Regarding the increase, Liao said that China's national defense budget
was only 35.1 billion US dollars in absolute number, about 7% that of a
country with the highest number of national defense spending. The per
capita national defense spending on each military personnel was only
15,000 US dollars in China, only one-twentieth of the relative figure of
the country with the highest national defense spending. In terms of the
proportion of national defense spending to relative GDP figure, most
countries and regions keep the ratio between 2.5% to 5%, whereas China's
national defense spending this year would only account for 1.4% of its
GDP figure.
Liao said that in 2006, China's national defense budget would keep a
moderate growth and the increased budget would first be used to raise the
salary level for military personnel. With a higher income level, it is
expected that that military people are encouraged to stay in the camp and
serve for the country.

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