China will boost defence spending by 7.2% this year, faster than the govt's GDP growth forecast of 5%. The national budget released on Sunday showed 1.55 trillion yuan ($224 billion) allocated to military spending.
In 2022, China pegged its defence budget at 1.45 trillion yuan. In dollar terms, China’s defence spending was about $230 billion.
In February, Finance Minister Nirmala Sitharaman has enhanced the allocation to India’s defence budget for fiscal 2023-24 by 13% to Rs 5.94 lakh crore (about $72.6 billion). In the fiscal 2022-23, it was Rs 5.25 lakh crore.
Beijing is nervous about challenges on fronts ranging from Chinese-claimed Taiwan to US naval and air missions in the disputed South China Sea near Chinese-occupied islands.
FM Nirmala Sitharaman has allocated Rs 1.62 lakh crore for capital expenditure, including the purchase of new weapons, aircraft, warships, and other military equipment.
This year's hike in defence spending marks the eighth consecutive single-digit increase. As in previous years, no breakdown of the spending was given, only the overall amount and the rate of increase.
India’s defence budget is 14.3% of the total Central government expenditure and 2.1% of GDP.
China, with the world's largest military in terms of personnel, is busy adding a slew of new hardware, including aircraft carriers and stealth fighters.
China has set a target of 5% GDP growth for 2023-24, while India is targeting GDP growth of 6% to 6.8% in 2023-24.
Both the Asian giants are ramping up their defence spending at a time when there have been tensions along the Line of Actual Control since May 2020.
China's reported defence budget is around 25% of fiscal 2023 US defence budget of $858 billion in military spending and funding for purchases of weapons, ships and aircraft, and support for Taiwan and Ukraine.