Taiwan planning 6% increase in defense spending in 2025

Taipei, Aug. 7 (CNA) The government's plan to spend NT$647 billion (US$19.76 billion) on defense in 2025, a year-on-year increase of about 6 percent, shows Taiwan's commitment to enhancing its self-defense, President Lai Ching-te (賴清德) said Tuesday.

"We are determined to bolster our self-defense capabilities and strengthen cooperation with democratic partners" as part of efforts to "ensure peace and prosperity," Lai said after being briefed by the Cabinet on its general budget plan for fiscal year 2025.

The government plans to spend NT$647 billion on defense next year, out of a total budget of NT$3.13 trillion, Lai said.

The proposed NT$647 billion budget, about 6 percent higher than the NT$606.8 billion in funding for defense in 2024, includes special budgets and special funds.

Lai said spending on social welfare would continue to account for the largest share of the government's budget in 2025, followed by spending on education, technology and culture.

Economic development and defense spending will rank third and fourth, respectively, in terms of their shares of the proposed budget, Lai said.

The budget plan, which still has to be signed off on by the Cabinet and approved by the Legislature, reflects the government's commitment to addressing the "increasingly complex internal and external challenges" facing Taiwan, Lai said following the briefing at the Presidential Office.

Those challenges include volatile international circumstances, climate change, the rise of artificial intelligence, industrial transformation, and demographic changes, Lai said.

Under the budget proposal, funding for long-term care will increase by NT$5.1 billion to NT$92.7 billion in 2025, and spending on programs to achieve net-zero goals will surpass NT$100 billion for the first time.

In response to the damage caused by Typhoon Gaemi, the central government has decided to allocate NT$55.1 billion next year to help local authorities improve water control systems in their regions, which would represent a 40.4 percent increase compared to 2024.

Typhoon Gaemi swept through Taiwan on July 24 and 25, bringing heavy rain to central and southern Taiwan and causing flooding in residential and agricultural areas.