Taiwan's Cabinet Approves Budget Pushes Defense Spending Over NT$1 Trillion
Taiwan's cabinet approved a supplemental defense budget that brings total spending to more than NT$1 trillion, about US$31.6 billion, raising the defense share of GDP to 3.83 percent.
On Thursday the Taiwanese cabinet passed a supplemental defence budget of NT$145.7 billion, pushing total annual defence outlays past the NT$1 trillion mark for the first time, equivalent to roughly US$31.6 billion. This raises defence spending to 3.83 percent of Taiwan's GDP after opposition lawmakers trimmed about a third of the original NT$1.25 trillion request for the next eight years. The new funds restore financing for the Strong Bow medium-altitude anti-ballistic missile system and add resources for drones, anti-drone measures and several classified projects.
President William Lai Ching-te said the budget demonstrates Taiwan's determination to strengthen its self-defence and maintain regional stability. China’s Taiwan Affairs Office accused the increase of provoking cross-strait tension and squandering public money, while U.S. officials have suggested Taiwan should target an even higher share of GDP for defence spending.
Why it matters
The budget hike signals Taiwan's escalating military readiness amid rising cross-strait tensions.
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