BEIJING - China is to introduce a results-based management system to ensure efficiency in military spending.

According to a circular approved by the Central Military Commission and made public on Sunday, military expenditure management and control will be improved to maximize the output of the spending.

Individuals or units will be held accountable for inefficiency, said the circular issued by the General Logistics Department of the People's Liberation Army (PLA).

The circular said the management system will be piloted this year at PLA headquarters and regional military commands in five areas such as fiscal management and military hospitals. The scheme will become universal by 2020.

Zhao Keshi, head of the PLA general logistics department, said the assessment of output and results will be introduced throughout the allocation, use and supervision procedures.

The system will ensure military funds being effectively transferred into combat capability, he said.

The circular said modern warfare is based on huge consumption of money and materials, and cost-output management should always be an important consideration for the military.

It urged accurate formulation of military budgets, strengthened monitoring of the budget execution, and strict accountability for those who failed to achieve the goals set.