The central government general budget report for next year that the Executive Yuan is to send to the Legislative Yuan later this month included only a marginal increase in defense spending, sources said.
Minister of National Defense Feng Shih-kuan (馮世寬) had previously expressed hopes of seeing next year’s defense budget increased to NT$400 billion (US$12.75 billion).
However, in light of a negative economic forecast for the coming year, the defense budget will see only a marginal increase of several billion New Taiwan dollars, which will bring total defense spending up to nearly NT$330 billion, a senior official who declined to be named said.
National defense expenditures for this year topped NT$321.7 billion.
The official said that although the proposed defense budget is below initial expectations, it will be sufficient to cover improvements to military living quarters, soldier benefits and military research facilities that were requested by Feng.
Under the new government, the air force will also receive new-generation trainer aircraft. However, procurement of some planned military equipment purchases will be postponed, such as upgraded AAV7 amphibious assault vehicles that will not be received until 2020 and new-generation Phalanx Close-in Weapons System cannons that will not finish shipping until 2024.
The official said the delays might reduce pressure on annual spending, offsetting the effects of a lower-than-expected budget. The budget report, which was announced on Monday last week by Premier Lin Chuan (林全) at the Executive Yuan, has met with overall approval by President Tsai Ing-wen (蔡英文).
In regard to next year’s defense budget amount, the anonymous official said that details are still being worked out, adding that “while overall there is still some growth over this year, the overall number is still below NT$330 billion.”
The official said that the main issue facing the military and policymakers at present is the increasing costs of personnel and operational maintenance; even if the government agrees to a budget increase the extra money is likely to be used up by maintenance costs.
Meanwhile, what is most important for Feng is the improvement of living conditions for military personnel, which he has brought up with legislature in the past, the official added.
Feng wants to see the establishment of larger living quarters for service members stationed across the nation, including improvements to family residences and the establishment of recreational facilities, the official said.
Noting that in past, when the US military was stationed in Taichung and Tainan, service members had softball fields, pools and other facilities at their disposal, the ministry said that making these improvements would help overcome the recruitment problems the military now faces.
“These improvement plans are reflected in next year’s budget,” the official said.
Meanwhile, critics said that over the past five years, the nation’s defense budget has been stagnant, remaining between NT$310 billion and NT$320 billion.
They said maintenance costs account for half of defense budget estimates, and therefore cut into investment in defense technology research and bolstering forces.
This has raised concerns that the nation is losing its ability to defend itself against the Chinese military, which is growing its forces annually, the critics said.
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