Hu Jintao gives the go-ahead to largest increase for nation's 2.3 million troops
President Hu Jintao has approved the largest pay rise for the nation's 2.3 million troops, further increasing China's already ballooning defence budget next year, according to sources briefed on the plan.
The Central Military Commission, which Mr Hu chairs, has endorsed 35 billion yuan to fund the People's Liberation Army's pay increase next year.
Military wages are expected to rise by between 20 per cent and more than 40 per cent after the defence budget is approved at the annual plenary session of the National People's Congress in March.
This will result in another sharp increase in defence spending for next year following double-digit rises to 244.6 billion yuan for fiscal 2005, and 283.8 billion yuan for fiscal 2006. The sharp growth in defence spending has become a major concern for the west as well as China's neighbours - particularly the United States and Japan - which have frequently called for greater transparency over military budgets.
The nation's military spending has risen by double digits annually for the past two decades with the exception of 2003. However, the leadership has argued that most of the extra money was used to improve living standards and raise salaries of military personnel.
Many analysts, including those at the Pentagon, believe China's real military spending is at least two to three times higher than publicly reported.
