Defense budget to increase by US$2.6bn

China's national defense budget will increase by US$2.64 billion, or 11.6%, according to a budget report presented to lawmakers by the finance ministry. The budget report included a projected an US$11 billion or 7% year-on-year increase in the central government's revenue in 2004, which is projected to reach US$166.7 billion. The report also projected no change in the budget deficit which is expected to drop to 2.5% of gross domestic product from 2.9% in 2003.