DHAKA: China underestimated its growing defence budget by nearly 20 percent with its spending likely nearing US$145 billion last year.

The Pentagon said on Thursday, The Straits Times publishes this report on Friday.

In an annual report required by Congress, the Pentagon said that China’s defence budget for 2013 was higher than the officially announced $119.5 billion.

‘We think that if you start factoring in other considerations, other funding streams that go into the military, other investments that are not included in the defence budget, that it could be up to $145 billion,’ a Pentagon official said of the report.

The United States and its allies, especially Japan, have repeatedly voiced concern about the Chinese military’s lack of transparency amid growing tensions between Beijing and neighbouring countries over maritime disputes.

BDST: 0752 HRS, JUNE 06, 2014