TAIPEI: Taiwan’s government plans to increase its 2026 defence budget to more than 3 per cent of GDP, the premier said on Thursday (Aug 21), as it faces US pressure to invest more in its own protection.
Taipei has ramped up investment in military equipment and weapons over the past decade in response to intensifying pressure from China, which claims the democratic island as part of its territory and has threatened to seize it by force.
Premier Cho Jung-tai said the latest hike was “another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security”.
The proposed spending needs to be approved by the opposition-controlled parliament before it can take effect.
Taiwan’s cabinet has allocated NT$949.5 billion (US$31.1 billion), or 3.32 per cent of GDP, for defence spending next year, the government’s budget documents show.
“Our total defence budget is calculated using NATO’s model and standards, including the budget for … the coast guard,” Cho told reporters.
Cho gave the figure 3.23 per cent during the news conference but the cabinet later confirmed to AFP that 3.32 per cent is the correct number.
Cho said overall expenditure for 2026 was budgeted at just over NT$3 trillion – up NT$110 billion or around 3.8 per cent from 2025.
President Lai Ching-te has previously vowed to increase defence spending to more than 3 per cent of GDP as Washington pressured the island and other governments around the world to spend more on their own security.
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