The government has allocated a record NT$647 billion (US$20.24 billion) for defense spending in fiscal 2025, accounting for about 2.45 percent of GDP, the Executive Yuan said yesterday after it approved the general budget plan.
The defense budget includes NT$479 billion to be appropriated by the Ministry of National Defense to cover operational expenses, as well as a special budget of NT$90.4 billion to procure new fighter jets and fund purchases of weapons to enhance the nation’s sea-air combat capabilities.
It also includes a non-profit special government fund of about NT$80.6 billion.
Photo: Lee Hui-chou, Taipei Times
The defense spending for next year marks an increase of 7.7 percent from this fiscal year, which is higher than the government’s forecast of a rise in GDP of 3.26 percent this year.
Defense spending this year accounted for 2.5 percent of GDP.
“We are aware of many discussions about the proper percentage of defense spending compared with GDP. Some say 3 percent, others say 5 percent and others say that a dramatic increase in defense spending would reduce the budget for other government policies,” Ministry of National Defense comptroller Lieutenant General Hsieh Chi-hsien (謝其賢) told reporters at a news conference after the weekly Cabinet meeting. “We respect the various views regarding this issue.”
“However, we must still compile the defense budget based on weapons needed to shore up our defenses,” Hsieh said. “We also need to take into account the nation’s financial situation.”
“We will not engage in an arms race with other countries,” he added.
The defense budget has grown steadily in the past few years, Hsieh said, adding that reaching 3 percent of GDP depends on whether the government can acquire key weapons it has requested.
The rise in funding for military operations and maintenance, as well as payments for weapons, jointly contributed to an unprecedented increase in defense spending, Hsieh said.
Cabinet spokesman Chen Shi-kai (陳世凱) said in a statement that Premier Cho Jung-tai (卓榮泰) has officially approved a submarine development project, which aims to build seven advanced vessels from next year to 2038.
The project is estimated to top NT$284 billion, Chen said.
“The government will continue to enhance the nation’s defense capabilities and enforce the policy of building our own military aircraft and ships to show our determination to maintain peace and stability in the Indo-Pacific region, build a resilient nation and defend our sovereignty,” he said.
Based on the general budget plan approved by the Executive Yuan, the aggregate revenue that can be appropriated is NT$3.1534 trillion, an increase of NT$428.2 billion from this year. Aggregate expenditure next year is expected to top NT$3.1325 trillion, an increase of NT$280.6 billion from this year. The remaining funds would be NT$20.9 billion.
Aside from defense spending, 26.5 percent of the general budget would be used to cover social welfare expenditures; 19.3 percent would pay for education, scientific development and culture; 17.3 percent would be used for economic development; 8.8 percent would cover general administrative expenses, while 5.8 percent would be used to shore up retirement funds.
The remaining 7.5 percent would be used to pay debt and interest, provide subsidies, develop communities and protect the environment.
Directorate-General of Budget, Accounting and Statistics Minister Chen Shu-tzu (陳淑姿) said that the government would borrow NT$231.3 billion, accounting for 6.9 percent of total annual expenditure, below the legal cap of 15 percent.
Cumulative debt by the end of next year is expected to top NT$6.81 trillion, accounting for 28.6 percent of the average nominal GDP in the previous three years, she said, adding that it is down 1.1 percentage points from this year and 12 percentage points below the cap of 40.6 percent stipulated in the Public Debt Act (公共債務法).
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
UNPRECEDENTED: In addition to the approved recall motions, cases such as Ma Wen-chun’s in Nantou are still under review, while others lack enough signatures The Central Election Commission (CEC) announced yesterday that a recall vote would take place on July 26, after it approved the first batch of recall motions targeting 24 Chinese Nationalist Party (KMT) lawmakers and Hsinchu Mayor Ann Kao (高虹安). Taiwan is in the midst of an unprecedented wave of mass recall campaigns, following a civil society push that echoed a call made by Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) in January to initiate signature drives aimed at unseating KMT legislators. Under the Civil Servants Election and Recall Act (公職人員選舉罷免法), Taiwanese can initiate a recall of district-elected lawmakers by collecting
RSS