China expects results from military spending warning military units that they will be held accountable for inefficiency should they fail to improve combat capability.

State-run media  Xinhua reported Sunday that China is keeping a close watch on military spending and intends to improve  efficiency in handling funds. Xinhua said China will strictly monitor how the funds are being used.

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Xinhua reported that under the new "results-based management system" individuals and military units will be held accountable for inefficiency should they fail to reach their goals. The new circular will take place in 2020.

Reports said the General Logistics Department of the People's Liberation Army (PLA) approved the circular. The circular was likewise approved by the Central Military Commission and made public on Sunday.

Zhao Keshi, the department head, said the system will ensure that military spending will go straight to programs that will improve and enhance military and combat capability.

State media further stated that under the circular, China said that modern warfare entails a lot of money and that cost-output management is an important consideration for the military.

Part of the new system includes the accurate formulation of military budgets, the tight monitoring of the handling of budgets, and strict accountability for failure to reach the goals that have been set.

Xinhua said the circular will be pilot-tested this year at the PLA headquarters and five regional commands, including fiscal management.

China announced last March that it will spend  808.23 billion yuan ($US 132 billion) on the PLA this year, a 12,2% increase compared to the same period last year.

China's Asia-Pacific neighbors have expressed concern over the large military spending of China amid the maritime territorial disputes it has with Japan, the Philippines, and Vietnam in the South China Sea.

President Xi Jinping has repeatedly called on the military to "win battles" and improve its military capability.

The circular came on the heels of the President's campaign to rid corruption in the Communist Party and the government.

Tagscircular, military spending, inefficiency