The defense budget for 2003 has been set at NT$259.9 billion, the lowest since 1996, according to the budget proposal that the Ministry of National Defense (MND) recently submitted to the legislature.
Despite the decline, the expenditures under the category of personnel costs are to increase by NT$3.3 billion next year, accounting for 47 percent of next year's defense budget.
The real figure should be over 50 percent, since there are still quite a lot of personnel-related costs scattered in other categories under different names.
The development does not conform to the MND's personnel-streamlining efforts in recent years, which should have produced the opposite results.
What makes the situation even worse is that the defense budget proposal for next year, which has been submitted to the legislature for examination and approval, is to be the lowest in eight years.
It means that the military won't have much to spend after allocating almost half of its money to its payroll.
Under the proposed budget, the armed services are to get only NT$17.6 billion for the purchase of new equipment and weaponry.
The major items on the purchase list include four Kidd-class destroyers, one new Chenkung-class frigate, nine CH-47SD Chinook transport helicopters and a batch of new Tienkung-series air defense missile systems.
Spending for the four Kidd-class destroyers, marking the first-year's investment on the ships, is set at NT$3.1 billion.
The budget proposal has a separate category that provides NT$15 million for the dispatch of personnel to take delivery of the Kidd-class destroyers at the end of next year.
A total of 114 naval personnel are to be sent in two groups on Dec. 2 and Dec. 31, next year, to the US to take delivery of the Kidds. They are to stay in the US for 30 days.
But these budget plans might not come about, as there are still a number of lawmakers -- mainly with the opposition camp -- who are opposed to the purchase of the four Kidds.
An enduring tug of war is expected between the navy and opposing lawmakers in the next session of the legislature, which is set to begin on Sept. 24.
Next to the Kidds, the nine CH-47SD helicopters are the second highest single-item weaponry investment next year, amounting to NT$2.6 billion.
Some of the CH-47SDs were delivered to the army in May, with at least two already being used in intensive training ahead of being put on operational status.
The third major item on the list is a batch of new Tienkung-series air defense missiles that the army is to acquire from the developer of these missiles, the Chunshan Institute of Science and Technology.
The budget proposal does not specify what sort of Tienkung missiles that the army is to buy.
However, the purchase will cost the army NT$1.1 billion next year.
A new Chenkung-class frigate now being constructed by China Shipbuilding Corp is another major item. An allocation of NT$1.1 billion has been listed for the frigate.
The new ship is to be the eighth of the Chenkung-class frigates, which were modeled after the Perry-class frigates of the US.
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