BEIJING (AFP) – China intends to improve efficiency in military spending through tighter monitoring of how funds are used, state media reported Sunday.
Under the new “results-based management system” set to be fully operational by 2020, individuals and military units will be held accountable for inefficiency, the state-run Xinhua news agency said.
It cited what it described as a “circular approved by the Central Military Commission and made public on Sunday”.
The General Logistics Department of the People’s Liberation Army (PLA) approved the circular, Xinhua said.
Xinhua quoted Zhao Keshi, head of the department, as saying that the system would ensure that military spending effectively goes to improve combat capability.
“The circular said modern warfare is based on huge consumption of money and materials, and cost-output management should always be an important consideration for the military,” the report said. “It urged accurate formulation of military budgets, strengthened monitoring of the budget execution, and strict accountability for those who failed to achieve the goals set.”
The system will start on a pilot basis this year at PLA headquarters and regional military commands in five areas including fiscal management and military hospitals.