Analysts say outlay signals potential for Taiwan conflict
Mainland defence spending for 2005 is expected to maintain double-digit growth and hit 230 billion yuan, Wen Wei Po reported.
The Beijing-backed newspaper said the State Information Centre announced in its recently completed fiscal forecast for 2005 that there will be no drop in the budget increases for the People's Liberation Army, as well as in the sectors of administrative management and the public security organs.
Based on the report, the PLA's 2005 expenditures would grow by at least 25 billion yuan to 230 billion yuan. Last year's budget of 218.3 billion represented an 11.6 per cent increase over the 2003 budget, which was only a 9.6 per cent increase, the lowest in 14 years.
Arthur Ding, PLA expert at National Chengchi University's Institute of International Relations in Taipei, said the release of the budget forecasts signalled that the Ministry of Defence and Minister of Finance have finally agreed after months of negotiation.
He also said the announcement indicated the PLA will soon release its annual white paper on China's military priorities. However, Professor Ding noted the figures provided no new insight into the PLA since they did not provide details on specific military expenditures.