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5h ago

Taiwan Sets 2026 Defense Plan at NT$949.5 Billion, Equal to 3.32% of GDP

The proposal now faces a vote in an opposition-led legislature.

A view of soldiers on top of M60A3 tanks during a drill rehearsal in New Taipei City, Taiwan July 20, 2023. REUTERS/Ann Wang/File Photo
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Taiwan's President Lai Ching-te, left, listens to a briefing about a T-BE5A Brave Eagle, Fifth-Generation Advanced Jet Trainer as he visits to inspect Taiwanese Air Force at a military base in Taitung County, eastern Taiwan, Tuesday, Jan. 21, 2025. (Chiang Ying-ying/AP)

Overview

  • Premier Cho Jung-tai said the total is calculated under a NATO-style method that for the first time counts coast guard and veterans spending.
  • The plan represents a 22.9% year-on-year increase to about US$31.2 billion after the KMT-led legislature cut or froze parts of the 2025 defense budget.
  • The defense ministry cited confirmed U.S. arms purchases and readiness needs, raising military investment to NT$161.6 billion and boosting operational upkeep 34.82% to NT$199 billion.
  • Special budgets are projected at roughly NT$186.8 billion, including NT$76.8 billion for aircraft and other items, with further details under cabinet review.
  • President Lai set a target of reaching 5% of GDP before 2030, as Beijing condemned the increase and the United States, including President Donald Trump, has urged higher spending and more American purchases.