(Central News Agency reporter Hou Ziying, Washington, 20th) The Executive Yuan will pass the central government’s general budget for 2016. Among them, the overall defense budget will reach NT$1.1225 trillion, breaking the trillion mark for the first time and exceeding 3% of GDP. US media pointed out that this shows Washington that Taiwan is investing in self-defense and is ready to purchase more US-made weapons, while also sending a warning to Beijing.
The Executive Yuan will pass the "116 Central Government General Budget and Affiliated Unit Budget and Comprehensive Table" on the 20th, Taipei time, and will be sent to the Legislative Yuan for review before the end of August. In terms of national defense funding, the competent department of the Ministry of National Defense has allocated a total of 691.9 billion yuan. Adding in the allocated and expected special budget of 218.2 billion yuan, non-operating special funds of 60.7 billion yuan, and taking into account the standards of the North Atlantic Treaty Organization, the retirement benefits of retired officers and soldiers and the expenditure of the Coast Guard, the overall defense budget reaches 1.1225 billion yuan.
"The Wall Street Journal" reported that according to official data, this will increase Taiwan's defense spending as a proportion of gross domestic product (GDP) in 2025 from 3.23% this year to about 3.93%.
As U.S. President Donald Trump continues to push Taiwan and other regional partners who rely on the United States to deter China to increase military spending, reports pointed out that Taiwan's new defense budget sends a signal to the United States that Taiwan is investing in self-defense and is ready to purchase more U.S.-made weapons.
At the same time, reports analyzed that this budget also reminds Beijing of the Taiwan government’s determination to strengthen the island’s defense capabilities. China regards Taiwan as part of its territory and will seize it by force if necessary; Taiwan's goal is to make invasion costly so that China will not dare to act rashly.
The report pointed out that the next challenges facing the Taiwan government include the need to obtain approval from Washington if it wants to purchase US-made weapons. Trump has not yet approved the US$14 billion worth of arms sales to Taiwan. He has also said that arms sales to Taiwan are a good bargaining chip in negotiations with China.
On the other hand, the offense and defense of Taiwan’s Legislative Yuan is also a big challenge. The report stated that the Legislative Yuan controlled by the opposition party has repeatedly delayed and deleted the defense budget requirements proposed by Taiwan President Lai Ching-te. The Legislative Yuan even passed the 2026 central government general budget last week.
In addition, Chinese President Xi Jinping is expected to visit Washington in September, and there may be other subsequent meetings between Trump and Xi. Reports indicate that this will undoubtedly increase the pressure on Trump, who may suspend arms sales to Taiwan in order to win over Xi Jinping.
As China continues to threaten Taiwan with military force, President Lai reiterated after taking office that he would promote national defense reform, implement the defense resilience of the whole society, and prioritize the promotion of special budgets to achieve the target of more than 3% of GDP in the defense budget to enhance Taiwan's self-defense capabilities.
