Key facts
- Taiwan's proposed defence spending for next year will increase by 16% to T$1.1225 trillion.
Taiwan's President Lai Ching-te confirmed that proposed defence spending for next year will rise by 16% to exceed T$1 trillion ($31.40 billion) for the first time, stating it is an investment in peace amid rising pressure from China.
Taiwan's commitment to significantly increase defence spending underscores the escalating geopolitical tensions in the Taiwan Strait and the island's resolve to bolster its security in the face of increasing pressure from China.
TAIPEI, Aug 17 (Reuters) - Taiwan's President Lai Ching-te announced on Monday that the island's proposed defence spending for the upcoming year will rise by 16%, exceeding T$1 trillion ($31.40 billion) for the first time. Lai stated that this significant increase, which will represent over 3% of the gross domestic product, is an investment in peace and a demonstration of Taiwan's determination to strengthen its self-defence capabilities amid escalating military and political pressure from China.
The cabinet is set to formally unveil the budget details on Thursday. This move aligns with calls from Washington for Taiwan to bolster its own defence. The government has prioritized military modernization, including the development of indigenous submarines, in response to the perceived threat from China, which views Taiwan as its territory.
However, Lai faces a challenge from Taiwan's opposition-dominated parliament, which has previously delayed budget approvals. The main opposition parties have indicated they will scrutinize spending plans to cut waste, prompting Lai to call for a review based on "professionalism, reasonableness, and proportionality."