Neighbours India and China have boosted their defence budgets by over 10%, adding to growing concern about the military build-ups in both countries and the region as a whole.
India's budget grew by 10% to 1.05 trillion rupees ($26.5 billion) - just under 2% of its gross domestic product - although further funds are available for procurements if needed. Some 480 billion rupees have been allocated for procurements and 33 billion for research, with the army to receive 362 billion rupees, the air force 108 billion rupees, and the navy 74 billion rupees.
The defence ministry returned 35 billion rupees from last year's budget, partly because of the last-minute cancellation of a tender for 197 light utility helicopters. Analysts say the habit of returning unused funds is a symptom of bureaucratic red tape that hinders the speedy conclusion of procurements, rather than actual savings.
Meanwhile, China has raised its defence budget by 17.6% to 417.8 billion renminbi ($59 billion), citing the need to increase salaries, cope with the high cost of oil, and the need to modernise its military. Further details were not revealed, but the move follows Beijing's typical defence spending growth of more than 15% annually over the past few years.
In a new report, the Pentagon says China's actual defence spending is routinely double what is announces. It also raised concerns about China's advances in space and cyberspace. Beijing labelled the report a "serious distortion of facts" and said: "We do not pose a threat to any country. The USA should drop its Cold War mentality."
Source: Flight International