Defense spending to reach 5% of GDP by 2030: President

Taipei, Aug. 22 (CNA) President Lai Ching-te (賴清德) on Friday pledged to steadily increase defense spending, setting a goal of raising it to 5 percent of gross domestic product (GDP) by 2030, to underscore Taiwan's commitment to boost defense capacity.

Lai made the remarks while addressing Navy personnel aboard a frigate of the 168th Fleet in Su'ao, Yilan County, a day after his Cabinet unveiled the 2026 government budget proposal, which included a record-high defense allocation of 3.32 percent of GDP.

"The government will continue to increase defense spending in the future, with the goal of reaching 5 percent of GDP by 2030," in line with NATO (North Atlantic Treaty Organization) standards, Lai said.

It showed a strong commitment to defending national security and democracy, as well as working with global partners to project strength of deterrence to maintain peace in the Indo-Pacific, he added.

The proposed 2026 defense budget, factoring in expenditures for veteran affairs and the Coast Guard, will reach NT$949.5 billion (US$31.08 billion), or 3.32 percent of GDP, pending approval by the Legislature.

In his talk, Lai also addressed the omission of a pay raise for military personnel in the 2026 government budget proposal, as demanded in the newly amended Pay Act of the Armed Forces passed by the opposition-controlled Legislature in June.

The amendment set the minimum monthly salary for volunteer soldiers at NT$30,000, up from NT$13,000 to NT$15,000 depending on rank. It also raised conscripts' pay to the NT$28,590 minimum wage, up from NT$21,350 -- the lowest level for privates second class.

The Democratic Progressive Party-controlled Executive Yuan on Friday submitted a request for the Constitutional Court to review whether the amendment is unconstitutional, citing its failure to specify a funding source for the budget increase.

Citing concerns over the amendment's constitutionality, Lai said the government will await a constitutional ruling before allocating the budget, should the amendment be deemed constitutional.