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Thursday, 27 December 2001  
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China to raise military spending next year: report

HONG KONG, Dec 26 (AFP) - China will increase its military spending next year, up from this year's officially declared 141 billion yuan (17.2 billion dollars), it was reported Wednesday.

Military spending will be "appropriately widened," the China-backed Wen Wei Po newspaper said citing an unnamed authoritative source.

China's military spending rose to 141 billion yuan this year, up 17.7 percent from 121 billion yuan in 2000. In 1998, the military spending was 93.47 billion yuan.

The increase was deemed a "normal" processs, the paper cited a military expert as arguing, noting that since the military was banned from engaging in businesses it was "necessary to maintain spending to keep all machinery functioning normally."

In addition, there is a need to raise the incomes of retired officers and those of enlisted men, it said.

Most observers believe real military spending in China is far in excess of officially declared amounts. 

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