Taiwan can well afford a NT$1.25 trillion (US$39.16 billion) special defense budget given its booming economy, President William Lai (賴清德) said yesterday, citing US emphasis on collective burden-sharing.
Lai’s proposed spending, which he says is needed to better face a rising threat from China, has been bogged down in the legislature, where the opposition, which has a majority of seats, complains that the plans are unclear and says it cannot sign “blank checks.”
At a forum hosted by the Taiwan Thinktank in Taipei marking the 30th anniversary of the nation’s first direct presidential election, when China fired missiles into the waters around Taiwan hoping to influence the result, Lai said in a speech that the direct election of the president carries three major significances.
Photo: Liao Chen-huei, Taipei Times
It embodies “sovereignty belongs to the people,” allowing citizens to decide who would lead the country, he said.
It establishes “a major milestone for democratic Taiwan, as the people, through direct presidential elections, affirm the legitimacy of the government and the democratic system, guiding Taiwan out of the dark era of authoritarian rule,” he said.
It also affirms Taiwan as a sovereign and independent country, he said, adding that “whether called the Republic of China, Republic of China (Taiwan), or simply Taiwan, the nation has gained a renewed life through constitutional amendments.”
His government is determined to defend Taiwan and its hard-won democratic system, he said.
“With Taiwan’s economic growth, we can absolutely afford it,” he said of the eight-year special defense spending plan.
“If we look at the United States’ National Security Strategy, the US emphasizes collective defense and burden-sharing,” he added.
Taiwan, the dominant producer of advanced semiconductors, has seen its economy booming thanks to demand for artificial-intelligence (AI) applications. Last year, the economy expanded at its fastest pace in 15 years.
The administration of US President Donald Trump has pushed its allies to boost defense spending, something Lai has enthusiastically embraced.
Taiwan would use AI to establish a real-time defense system while promoting its defense industry, Lai said.
“In other words, our defense budget is not only a budget for national defense, but also a budget for economic and industrial development,” he said.
On Friday, the Legislative Yuan authorized the government to sign for about US$9 billion in arms deals with the US to ensure contract deadlines are not missed, even though the spending plans have not been approved yet by lawmakers.
Additional reporting by Lee Wen-hsin
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