Beijing(CNN) China says its military budget will increase by 7% to 8% in 2016, the slowest pace in five years.
Fu Ying, the spokeswoman for the National People's Congress, China's parliament, which begins its annual 11-day session Saturday, said Friday the increase was based on "defense needs" and government revenue.
The lower-than-expected figure comes amid an economic slowdown, with China's growth rate at its weakest in a quarter of a century.
China said it would spend a total of 887 billion yuan ($144.2 billion) in 2015, an increase of 10.1%.
This is only a quarter of what the U.S. spends on its military. But, while China's budget has increased by double digits every year since 2010, U.S. spending has declined since then.
Fu said the government would release exact figures Saturday.
China celebrates World War II victory
Chinese military helicopters fly in formation over Tiananmen Square on September 3, 2015 in Beijing, China. A massive military parade in Tiananmen Square marked the 70th anniversary of victory over Japan and the end of World War II.
A military vehicle carrying a Pterodactyl I drone rolled through Beijing on September 3.
Military vehicles carry missiles past the Tiananmen Gate on September 3.
Chinese President Xi Jinping stands in a sedan to address the People's Liberation Army on September 3.
Thousands of doves are released during the parade on September 3.
Tanks promenade through the parade route on September 3.
Chinese veterans wave from a bus during the military parade on September 3.
Chinese military helicopters fly in formation during the grand parade on September 3.
Missiles are displayed along the parade route on September 3.
Chinese soldiers march past the Great Hall of the People at Tiananmen Square on September 3, 2015 in Beijing, China.
Chinese President Xi Jinping, in the middle, stands with (from left) South Korean President Park Geun-hye, Russian President Vladimir Putin, and former Chinese presidents Jiang Zemin and Hu Jintao.
Chinese soldiers march past the Great Hall of the People in Tiananmen Square on September 3 in Beijing, China.
Chinese President Xi Jinping, left, stands with former Chinese Presidents Jiang Zemin and Hu Jintao and current Premier Li Keqiang at the military parade in Beijing on September 3.
People's Liberation Army troops arrive at Tiananmen Gate in formation for the parade on September 3.
Chinese soldiers march past Tiananmen Square on September 3.
A Chinese military choir stands in position ahead of a military parade at Tiananmen Square in Beijing on September 3.
Chinese soldiers conduct last-minute drills ahead of the military parade in Beijing's Tiananmen Square on September 3.
Decorated with medals, 85-year-old Shen Ji-lan prepares for the military parade in Beijing. She is the only person in China to be appointed twelve consecutive times as a member of the National People's Congress, China's legislature, according to local media.
A paramilitary policeman stands at attention in Tiananmen Square in Beijing on September 2, 2015.
Regional tensions
China's military build-up has unsettled its neighbors and Washington, particularly as Beijing has taken a more robust stance in territorial disputes in the South China Sea.
Large-scale land reclamation by China has transformed sandbars into islands equipped with airstrips, ports and even missiles.
Fu blamed the United States for militarizing the South China Sea, saying that most of the advanced aircraft and warships passing through the disputed waters belong to the U.S. military.
Traditionally, the People's Liberation Army has been focused on protecting its own borders, but recent missions have seen it join U.N. peacekeeping efforts in places like South Sudan, and fighting piracy in Somalia.
The country has started work on its first military base overseas -- in Djibouti in the Horn of Africa.
China is also trying to modernize its military.
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In September, President Xi Jinping pledged to cut 300,000 troops from the 2.3 million strong PLA.
China's actual defense spending is often higher than the announced budget, according to Yvonne Chiu, an assistant professor in politics and public administration at Hong Kong University, who said that China was looking to spend its money more wisely as the economy slows.
She said China was likely to focus on new technology, the South China Sea and its overseas presence.
"The budget is irrelevant in some ways -- it's how the money gets spent."