China hikes defense budget by 7.5 pc to $177.6 billion

China announced a 7.5 per cent increase in its defense budget this year. China's budgeted defense spending growth rate stood at 7.6 per cent in 2016, 7 per cent in 2017, and 8.1 per cent in 2018.

Beijing: China's defense budget for 2019 has been pegged at 1.19 trillion yuan (about 177.61 billion US dollars), marking an increase of 7.5 per cent over the last year's figure, despite lower economic growth rate ranging between 6 and 6.5 per cent.

Describing China's defense budget increase as reasonable and appropriate, Zhang Yesui, spokesperson for the annual session of the 13th National People's Congress (NPC), said the raise aims to "meet the country's demand in safeguarding national security and military reforms with Chinese characteristics."

However, according to a draft budget report to be submitted to the annual session of NPC opening on Tuesday, China will lower its defense budget growth rate to 7.5 per cent from last year's 8.1 per cent.

The rate marks a fourth straight year for the budgeted growth rate to dip into the single digit since 2016, following five consecutive years of double-digit increases, official news agency Xinhua reported.

China's budgeted defense spending growth rate stood at 7.6 per cent in 2016, 7 per cent in 2017, and 8.1 per cent in 2018.

According to the South China Morning Post, Beijing has set a lower economic growth target for this year and will step up fiscal measures to stabilize the growth.

The government has set a growth target range of 6 to 6.5 per cent for this year, down from the target of "about 6.5 per cent" set for last year, after factoring in a variety of headwinds, including the trade war with the United States, an already high debt level and financing bottlenecks for private enterprises.

Deficit target has been raised to 2.8 per cent of gross domestic product from 2.6 per cent in 2018, providing more fiscal leeway for government spending.

With inputs from ANI