BEIJING, Aug. 1 (Xinhua) -- President Hu Jintao said here Wednesday that China is going to gradually increase its defense budget as its national economy grows.

　　"We will gradually increase input in national defense as the economy grows, and continue to modernize national defense and the armed forces in a way that serves the interests of our national security and development," said Hu, also chairman of the Central Military Commission.

　　He was speaking at a grand rally marking the 80th anniversary of the founding of the Chinese People's Liberation Army (PLA) at the Great Hall of the People in Beijing.

　　The Chinese legislature approved in March the national defense budget for 2007 fiscal year, which reached 44.94 billion U.S. dollars, with an annual increase of 17.8 percent.

　　Hu said, the modernization of national defense and armed forces "is the historical mission of the PLA and the common cause of the Chinese people of all ethnic groups."

　　"Economic growth is the basis for enhancing defense capabilities, which is in turn an important indicator of the overall national strength," Hu said.

　　The President stressed that while adhering to the defensive nature of the country's military buildup, China must build a "slim but strong" armed forces by striking a sound balance between speed, quality and efficiency in the modernization drive of the country's 2.3 million-member troops.

　　"The world is experiencing profound transformation, China should be alert to potential risks," he said. "The international situation is generally stable, but the world is not all peaceful."