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Taiwan Plans Defence Budget Increase to over 3% of GDP

This month, Taiwan's cabinet proposed defence spending next year of T$949.5 billion, amounting to 3.32% of GDP and including almost 27 billion in allocations.
Facing rising pressure from China, Taipei prioritises military modernisation as Washington urges more defence spending, influencing the 2026 budget plans to exceed 3% of GDP.
Officials said the budget now includes T$3.8 billion for the Coast Guard Administration and veterans and military retirement benefits, marking the first inclusion of coast guard spending.
With the China-friendly Kuomintang party controlling the legislature, the proposed defence budget needs opposition-controlled parliament approval; Chieh said, `As for Washington's reaction, I think it will welcome Taiwan's move to increase its defence budget, but it is still far from what they would be satisfied with.`
Regionally, China is upgrading forces and spending 7.2% more this year, while Taiwan remains outgunned and relies heavily on United States arms sales for security.

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