China, India hike defence expenditure as the West cuts back

London: Global recession has affected defence spending differently across regions and countries of the world, according to a prestigious think tank, the International Institute for Strategic Studies (IISS). It said European NATO members faced reduction, or, at best, a flattening of their defence budgets for 2009, even as China and India sharply hiked defence expenditure for the same year.

In the United States, the report points out, the near doubling of defence spending under the administration of former president George W Bush was brought to a halt with a budget deficit of 12.5 per cent for 2009. This "marked the end of this phase of rising defence spending,'' the report said.

''Both Obama and Gates have signalled that fiscal realities will necessitate a dramatic re-prioritisation within defence spending.''

"The US military is still under severe strain," the 490-page report noted.

"In light of severe funding constraints, the emphasis on partnerships, divisions of labour and alliances will certainly become important," said IISS chief John Chipman on the launch of the institute's annual report "The Military Balance".

Though Obama has asked Congress to approve a record $708 billion in defence spending for fiscal 2011 - including a 3.4 per cent increase in the Pentagon's base budget – he has also said he will persist with his efforts to eliminate wasteful programmes.