Despite a slowing economy, the central Chinese government has decided to raise its defense budget by 10 percent from last year.

This was announced to the media by Parliament spokesman Fu Ying.

China's budget in 2014 was at $130 billion, the second-biggest in the world next only to the United States. The 2014 budget was 12.2 percent higher compared to 2013.

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The target puts the Chinese defense outlays at about $145 billion but will be China's smallest raise in military spending in over five years.

China has been declaring double-digit budget increases but some observers believe the country's real defense allocation is actually bigger than what Chinese officials publicly declare.

China's military expansions have raised concerns among its neighbors in the region. This comes as China continues to maintain an active stance in the territorial rows in the East and South China Seas.

Japanese Chief Cabinet Secretary Yoshihide Suga says, "regardless of China's defense spending, the security situation in the region surrounding Japan is severe for various reasons."

That is why, Suga says, aside from their efforts in the field of diplomacy and defense, "it is extremely important for our country to strengthen the United States-Japan alliance."

Aside from Japan, India also expected the increase in China's military budget.

An Indian defense official says, "there was some talk that it could slow down in view of China's economic slowdown. But our sense is, modernization will remain on track."

This year up to next year, India has allocated a defense budget of $40 billion, or 7.9 percent higher compared to its budget from 2014 up to the beginning of 2015.

But observers note the figure is not sufficient to purchase fighter planes, submarines and warships all at the same time.

Meanwhile, in the United States, the White House has submitted to the Capitol Hill a proposed increase of $534 billion for its defense department. The Obama administration also wants $51 billion in war funds.

The White House says legislators must end the budget cuts to avoid eroding the United States' military power across the globe.