BEIJING, March 4 (UPI) -- China's defense budget is set to rise by 17.8 percent this year, the official Xinhua news agency reports.
The defense budget for China is expected to hit 350.92 billion yuan (more than $45.3 billion), said a spokesman for the annual session of China's top legislature.
Jiang Enzhu, spokesman for the Fifth Session of the 10th National People's Congress, said the budget is being raised to increase salaries and allowances to servicemen and army retirees. The increase also will reportedly be used to upgrade military equipment.
Xinhua reported that the 2007 defense budget will account for 7.5 percent of China's budgeted fiscal expenditure.
"It's a moderate increase in step with China's economic development," said Liao Xilong, director of the General Logistics Department of the People's Liberation Army.
