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LAND AND ETHNIC GROUPS NATURAL RESOURCES, CLIMATE AND ENVIRONMENTAL PROTECTION STATE, POLITICAL SYSTEM AND ADMINISTRATION DIVISION POLITICAL PARTIES AND MASS ORGANIZATIONS FOREIGN AFFAIRS AND INTERNATIONAL RELATIONS NATIONAL DEFENSE ECONOMY SOCIAL LIFE EDUCATION, SCIENCE AND TECHNOLOGY CULTURE, PUBLIC HEALTH AND SPORTS
National Defense Policy
Defense Expenditures
The Armed Forces

Defense Expenditures

Pursuant to the National Defense Law, the Chinese Government follows the guiding principle of coordinating military and economic development. Based on the economic development and revenue growth, it has continued to increase its defense expenditures moderately.

China's Defense Expenditures in 1978-2005    Unit: million yuan

Year

Defense expenditures

State financial expenditures

Percentage

1978

16784

112209

14.96

1980

19384

122883

15.77

1985

19153

200425

9.56

1989

25147

282378

9.05

1990

29031

308359

9.41

1991

33031

338662

9.75

1992

37786

374220

10.1

1993

42580

464230

9.17

1994

55071

579262

9.51

1995

63672

682372

9.33

1996

72006

793755

9.07

1997

81257

923356

8.8

1998

93470

1079818

8.66

1999

107640

1318767

8.16

2000

120754

1588650

7.6

2001

144204

1890258

7.63

2002

170778

2205315

7.74

2003

190787

2464995

7.74

2004

220001

2848689

7.72

2005

241600

3370812

7.34

The increased part of China's defense expenditures has primarily been used for the following purposes: increase of the salaries and allowances of the military personnel, further improvement of the social insurance system for servicemen and women, support for the structural and organizational reform of the military, increased investment in the development of high-caliber talents in the military to ensure the achievement of the PLA's Strategic Project for Talented People and moderate increase of equipment expenses aimed at stepping up defense capabilities.

In the past few years, the percentages of China's annual defense expenditures to its gross domestic product (GDP) and to the state financial expenditures in the same period have remained basically stable. In most of those years, the growth rate of China's defense expenditures has been lower than that of the state financial expenditures.

The absolute amount of China's defense expenditures has long been lower than those of some major Western countries, and the proportion to the GDP and state financial expenditures has also been relatively low.

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