Key facts
- Taiwan's proposed defense spending for next year will increase by 16% to T$1.1225 trillion.
Taiwan's President Lai Ching-te announced a record defense budget of over T$1 trillion ($31.40 billion) for next year, a 16% increase, framing it as an investment in peace amid escalating military and political pressure from China.
The increased defense spending signals Taiwan's commitment to self-defense amid rising geopolitical tensions with China, potentially impacting regional stability and international relations.
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."