Taiwan's defense spending to reach record NT$606.8 billion in 2024
ROC Central News Agency
08/24/2023 11:17 PM
Taipei, Aug. 24 (CNA) Taiwan's government has proposed a national defense budget of NT$606.8 billion (US$19.1 billion) for next year, according to a budget plan approved by the Cabinet on Thursday.
The NT$2.88 trillion central government general budget plan for fiscal year 2024 passed by the Cabinet includes NT$440.6 billion in proposed spending on national defense, an increase of 7.7 percent from the current year.
However, total planned defense spending in 2024 will rise to NT$606.8 billion, counting additional special budgets and other funds that could be allocated to the Ministry of National Defense (MND), the Cabinet's Directorate-General of Budget, Accounting and Statistics (DGBAS) said at a press conference on Thursday.
According to the ruling Democratic Progressive Party (DPP), the budgeted NT$606.8 billion translates into roughly 2.5 percent of Taiwan's gross domestic product (GDP) and is a testament to the government's determination to defend the country.
MND data shows that Taiwan's annual defense spending has been on the rise since President Tsai Ing-wen (蔡英文) took office in 2016.
Defense spending has increased from NT$355.7 billion, or 2 percent of GDP, in 2017 to NT$580.3 billion in 2023, which is roughly 2.5 percent of GDP, the data shows.
Of the proposed spending for 2024, the MND will allocate NT$131 billion and NT$179 billion to its operations and personnel, respectively, while NT$130.6 billion will be used for military investment, DGBAS head Chu Tzer-ming (朱澤民) said.
Speaking about the increase in the defense budget, MND Deputy Minister Alex Po (柏鴻輝) said the ministry has to make several payments for arms Taiwan has purchased from the United States, including long-range precision strike weapon systems HIMARS and M1A2T Abrams tanks.
Taiwan is expected to begin taking delivery of the 108 M1A2T Abrams tanks and 29 HIMARS systems from the U.S. beginning in 2024, the MND said at a legislative hearing in May.
Po declined to provide further information on those payments, saying the MND would detail proposed 2024 defense spending at closed legislative sessions where lawmakers discuss confidential information.
Meanwhile, Chu from the DGBAS said the national defense budget also includes NT$11 billion in spending on fuel.
Po later acknowledged that there would be an increase in the MND's fuel spending, citing rising global oil prices and the frequent sorties by Chinese military aircraft near Taiwan, which require the ministry to scramble fighter jets to monitor their activities.
At a separate press conference, DPP legislator Liu Shyh-fang (劉世芳) said the proposed MND spending demonstrated the government's resolve to strengthen Taiwan's defense capabilities.
China's expansion has undermined the stability of the Taiwan Strait, she said, adding that neighboring counties, such as Japan, South Korea, the Philippines, Vietnam, and Australia have also expressed alarm.
(By Teng Pei-ju)
Enditem/AW
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