Taiwan’s cabinet plans to allocate NT$949.5 billion ($31.27 billion) to defense in 2026, or 3.32% of GDP. This is the first time since 2009 that defense spending will exceed the 3% threshold of gross domestic product.
This was reported by the Central News Agency of Taiwan, Reuters writes.
The budget increase comes amid growing military and political pressure from China, which claims the island as its territory, a claim Taipei strongly denies.
President Lai Tsing-te has previously said that defense spending should exceed 3% of GDP by 2026. The budget increase also reflects Washington’s demands for Taiwan to invest more in its own security — similar to US pressure on European allies.
For the first time, the defense budget includes spending on the coast guard, which regularly encounters Chinese patrols and would be involved in protecting the island in the event of war.
Taiwan is focusing on modernizing its armed forces, including developing its own submarines. Meanwhile, China is actively building up its military capabilities, developing aircraft carriers, stealth fighters, and missile systems.
In March, Beijing announced a 7.2% increase in its defense budget to 1.78 trillion yuan ($248 billion), exceeding the planned economic growth rate in 2025.
Source: suspilne.media