China's defence budget is expected to reach 280.7 billion yuan (US$ 35.1 billion) this year, a year-on-year increase of 14.7 per cent, said the report on draft central and local budgets for 2006 which was revealed yesterday.

The increase will raise soldiers' pay and strengthen the army's capability to fight a defensive war with the application of high technology, help it to respond to emergencies, and to safeguard the country's sovereignty and territorial integrity, said the report.

Earlier on Saturday, Jiang Enzhu, spokesman for the fourth session of the 10th National People's Congress (NPC), said the sum accounts for 7.4 per cent of the budgeted expenditure for this year, almost the same percentage compared with the previous three years. The budget still needs approval at the annual session of the national legislature.

Jiang said the increase in the defence budget would be used to raise the salary and welfare of servicemen, and cover the mounting costs of oil products for military use in line with the price hike on the international oil market.

The increased defence budget plan was announced shortly after Taiwan leader Chen Shui-bian's decision to scrap the island's "National Unification Council" and unification guidelines.

Jiang stressed that the budget increase was not aimed at military expansion or aggression.

"We have no intention, nor the ability, to increase our military armaments substantially," Jiang said, adding that China's military spending remains lower than many other countries in the world. He cited the United States, United Kingdom, France and Japan as a contrast.

Representatives from the delegation of the People's Liberation Army (PLA) who are attending the annual session of the NPC welcomed the budget increase, adding it is a "natural increase" while denying the increase was due to Taiwan.

"Inconsistency between supply and demand is still there," said Yang Xuhua, a major general from the Lanzhou Military Area Command. "The PLA still needs to improve in the capability of self-defence and the ability to cope with emergencies," he said.

Source: China Daily