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).
PROVOCATIVE: Chinese Deputy Ambassador to the UN Sun Lei accused Japan of sending military vessels to deliberately provoke tensions in the Taiwan Strait China denounced remarks by Japan and the EU about the South China Sea at a UN Security Council meeting on Monday, and accused Tokyo of provocative behavior in the Taiwan Strait and planning military expansion. Ayano Kunimitsu, a Japanese vice foreign minister, told the Council meeting on maritime security that Tokyo was seriously concerned about the situation in the East China and South China seas, and reiterated Japan’s opposition to any attempt to change the “status quo” by force, and obstruction of freedom of navigation and overflight. Stavros Lambrinidis, head of the EU delegation to the UN, also highlighted South China Sea
The final batch of 28 M1A2T Abrams tanks purchased from the US arrived at Taipei Port last night and were transported to the Armor Training Command in Hsinchu County’s Hukou Township (湖口), completing the military’s multi-year procurement of 108 of the tanks. Starting at 12:10am today, reporters observed more than a dozen civilian flatbed trailers departing from Taipei Port, each carrying an M1A2T tank covered with black waterproof tarps. Escorted by military vehicles, the convoy traveled via the West Coast Expressway to the Armor Training Command, with police implementing traffic control. The army operates about 1,000 tanks, including CM-11 Brave Tiger
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, said it expects its 2-nanometer (2nm) chip capacity to grow at a compound annual rate of 70 percent from this year to 2028. The projection comes as five fabs begin volume production of 2-nanometer chips this year — two in Hsinchu and three in Kaohsiung — TSMC senior vice president and deputy cochief operating officer Cliff Hou (侯永清) said at the company’s annual technology symposium in Silicon Valley, California, last week. Output in the first year of 2-nanometer production, which began in the fourth quarter of last year, is expected to
Taiwan’s drone exports surged past US$100 million in the first quarter, exceeding last year’s full-year total, with the Czech Republic emerging as the largest buyer, the Ministry of Economic Affairs said. Exports of complete drones reached US$115.85 million in the period, about 1.2 times the total recorded for all of last year, the ministry said in a report. Exports to the Czech Republic accounted for about US$100 million, far outpacing other markets. Poland, last year’s top destination, recorded about US$11.75 million in the first quarter. Taiwan’s drone exports have expanded rapidly in the past few years, with last year’s total
RSS