China's Defense Budget Increases To IDR 3.65 Quadrillion In 2024

JAKARTA - China's defense budget increased by 7.2 percent to 1.67 trillion yuan or around IDR 3.65 quadrillion in 2024.

"The government's main spending is as follows, amounting to 60.783 billion yuan for the diplomatic budget or an increase of 6.6 percent; 1.665 trillion yuan for the national defense budget or an increase of 7.2 percent," said the 2023 Central and Regional Government Work Reports and Budget document as well as the 2024 Central and Regional Government Budget Draft released at the opening of the 14th China National People's Congress (NPC) session at the People's Agung Hall, Beijing, China, reported by ANTARA, Tuesday, March 5.

If this amount is converted to US dollars, the value is around 2.31 billion US dollars.

The percentage increase in China's defense budget is the same as the increase in the 2023 period compared to 2022, which is 7.2 percent with a value of 224.79 billion US dollars or around Rp. 3.4 quadrillion.

This is in line with China's plan to maintain the single-digit growth of the defense budget in eight consecutive years since 2016.

In 2020, China's national defense budget growth rate is 6.6 percent, then 6.8 percent in 2021

"We will continue to keep spending tight and give priority spending for defense, security, education and technology, education, issuance of government bonds and payment of debt interest," the document states.

In the document, it is stated that China's government security spending in 2024 is budgeted at 227.66 billion yuan (around Rp498.72 billion), an increase of 1.4 percent, then education spending of 164.936 billion yuan (around Rp361.33 billion), or an increase of 5 percent.

Furthermore, spending on science and technology amounted to 370.82 billion yuan (around Rp. 812.533 billion) or an increase of 10 percent; food stock expenditure of 140.636 billion yuan (around Rp. 308.15 billion) or an increase of 8.1 percent and debt interest payments of 777.315 billion yuan (around Rp. 1.7 trillion) or an increase of 11.9 percent.

"We fully implement President Xi Jinping's thoughts on strengthening the military will provide stronger financial guarantees for efforts to modernize China's national defense and armed forces across all lines," the document said.

Meanwhile, China's national revenue is projected to increase by 3.3 percent compared to 2023, which is worth 22.395 trillion yuan (around Rp49.07 quadrillion or US$3.1 trillion). With additional transfer of funds of 2.094 trillion yuan from other sources and using the remaining budget funds and surplus for the 2023 period, China's total revenue in 2024 is targeted at 24.489 trillion yuan (Rp53.66 quadrillion or Rp3.4 trillion US dollars).

Meanwhile, China's national spending is targeted to reach 28.549 trillion yuan (around IDR 62.54 quadrillion or 3.96 trillion US dollars), an increase of 4 percent.

This means that the Chinese government is targeting a 3 percent deficit in the 4.06 trillion yuan (around IDR 8.89 trillion or 563.9 billion dollars) so that more than 180 billion yuan compared to the 2023 period which will be closed with the issuance of government securities.

One of China's military forces is to maintain security in the Taiwan Strait, for this the Chinese government said it would take a peaceful cross-sate approach.

"We will improve the peaceful development of cross-sate relations, encourage economic cooperation and encourage integration in all fields for the benefit of the Chinese people on both sides of the strait," the document reads.