DEFENSE / Taiwan defense spending to reach 3.32% of GDP in 2026: Premier

Taipei, Aug. 21 (CNA) Taiwan's defense spending will reach 3.32 percent of gross domestic product (GDP) next year, Premier Cho Jung-tai (卓榮泰) said Thursday, adding that the planned budget increase underscores the nation's commitment to safeguarding national security.

The proposed defense spending for the fiscal year 2026, factoring in expenditures for veteran affairs and the Coast Guard, will reach NT$949.5 billion (US$31.18 billion), representing 3.32 percent of GDP, Cho said at a Cabinet press briefing in Taipei.

Cho said the new calculation method followed North Atlantic Treaty Organization (NATO) standards. "We are demonstrating to the world and to our own people our determination and capability to safeguard national sovereignty and security," the premier said.

Under the same calculation, the proposed NT$949.5 billion, which still requires legislative approval, represents an increase of NT$176.8 billion, or a year-on-year rise of 22.9 percent, Hsieh Chi-hsien (謝其賢), head of the Comptroller Bureau at the Ministry of National Defense (MND), said at the briefing.

Even without taking into account veteran and Coast Guard expenses, the proposed budget for the MND alone will increase by NT$93.8 billion, a 20.1 percent rise compared with 2025.

According to MND, spending on military investment will increase by NT$23.2 billion, or 16.76 percent, reaching NT$161.6 billion due to payments for arms purchased from the United States.

In response to the "growing threat from adversaries," the MND said, expenditure on operational upkeep is also set to rise significantly -- by 34.82 percent to NT$199 billion -- mainly to cover the cost of additional ammunition and spare parts.

Personnel costs, estimated at NT$200.8 billion, will remain the largest component of the MND's 2026 budget.

Hsieh said special budget spending would stand at approximately NT$186.8 billion, including NT$76.8 billion for the confirmed purchase of aircraft and other defense articles, as well as planned Coast Guard system upgrades.

He declined to provide details on the breakdown of the remaining NT$110 billion, saying only that the amount includes additional arms purchases first pledged by President Lai Ching-te (賴清德) in February.

The MND official added that the proposal to procure the additional arms was submitted to the Cabinet for review on Aug. 8, and he was unable to provide further information while the review is still underway.

Calls for Taiwan to raise defense spending above at least 3 percent of GDP have grown amid rising military pressure from China in recent years.

Under the Democratic Progressive Party government, defense spending has hovered between 2 and 2.5 percent over the past nine years.

The last time Taiwan's defense spending exceeded 3 percent of GDP was in 2009, during the presidency of Ma Ying-jeou (馬英九) of the Kuomintang (KMT).

Speaking at the Presidential Office in February, Lai said his administration would aim to ensure Taiwan's defense budget exceeds 3 percent of GDP, "to demonstrate our resolve for national defense."

His comments were made in light of U.S. President Donald Trump's repeated calls, both during his presidential campaign and after his reelection, for Taiwan to increase military spending.