China, the world's third largest economy, today targeted an 8 per cent GDP growth for this year and allocated $77 billion for the defence sector mainly to increase the ability of the country's army to respond to "multiple security threats".
In his customary 'State of the Union' address to the Chinese parliament, Premier Wen Jiabao said the country's economy was the first in the world to have staged a recovery after the global economic slowdown in 2008, thanks to the $586 billion stimulus package announced last year.
"Consumption played a much bigger role in fuelling economic growth" as the bailout managed to raise domestic spending to compensate the fall in exports, he said.
Wen also said 2010 would be a "crucial but complicated" year for China as it will have to continue fighting against the financial crisis while maintaining a stable and comparatively fast economic growth and accelerating transformation of growth pattern.
Last year, the Chinese economy grew 8.7 per cent. He said China plans to increase its national defence spending by 7.5 per cent to 519.082 billion yuan in 2010. It is about 36 billion yuan more than last year. China's current military budget is almost double as that of India.
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Though China effected a modest increase this year in its defence spending, it would still continue to be the second largest spender in this field, next only to the US.
India increased its defence spending by 3.98 per cent this year to $32 billion (Rs 1,47,344 crore) last week.
In his speech to some 3,000 members of the National People's Congress, Wen said the focus of the military spending will be to strengthen all aspects of the People's Liberation Army (PLA), the world's largest standing army, to make it more revolutionary, modern and standardised.
"We will concentrate on making the army better to enable it to win informationised (IT-driven) local wars to enhance its ability to respond to multiple security threats and accomplish diverse array of military tasks," he said in a two hour long address.
"We will work to strengthen the army ideologically and politically. We will accelerate the comprehensive development of a modern military logistics system. We will intensify Research and Defence on defence and the development of weapons and equipment," he said.
He said "we will run the army strictly and in accordance with the law and make it more standardised."
"We will actively yet prudently deepen reform of national defence and the army. We will modernise and improve the armed police force and make it better to enable to carry out duties, respond to emergencies, combat terrorism and safeguard stability," he said.