ABSTRACT
Determining what Beijing spends on defence is an impossible task. This chapter does not pretend to do so. Rather, its purpose is to explore the problems involved in estimating Beijing's military expenditures. That said, the simple matter of language used to describe these expenditures can be confusing. For the purposes of this chapter, the term defence budget refers to the amount specifically allocated to national defence in the Minister of Finance's annual state budget report. Wherever it is known, tables in this chapter refer to the funds actually expended on defence as reported in the annual budget statement. Usually, the funds disbursed are larger by a small fraction than the amount allocated. Military expenditures will refer to funds and resources used for defence beyond those specified in the budget as spending for national defence.
