Taiwan plans defence budget increase to over 3% of GDP

TAIWAN’S government plans to increase its 2026 defence budget to more than three percent of GDP, the premier said yesterday, as it faces US pressure to invest more in its own protection.

- 

Taipei has ramped up investment in military equipment and weapons over the past decade in response to intensifying pressure from China, which claims the democratic island as part of its territory and has threatened to seize it by force.

Premier Cho Jung-tai said the latest hike was “another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security”.

The proposed spending needs to be approved by the opposition-controlled parliament before it can take effect.

Taiwan's cabinet has allocated NT$949.5 billion, or 3.32% of GDP, for defence spending next year, budget documents show.

That is an increase of 22.9% on this year.