With China More Assertive, Taiwan Mulls Bigger Defense Budget

TAIPEI, TAIWAN - Taiwan’s Cabinet is proposing to increase the military budget next year to develop and buy modern hardware as Chinese ships and aircraft continue to encroach on the island’s waters and airspace, keeping alive fears of a strike.

Taiwan legislators have begun evaluating the Cabinet’s request to spend $17.07 billion next year for equipment such as fighter planes, guided missiles and drones. Of that total, $1.45 billion is for special purposes including fighter jets and $2.13 billion is for unspecified expenses. The ruling party-dominated parliament, or Legislative Yuan, is expected to review and approve the budget by year's end. Military budget hikes are nothing new for Taiwan; this one would be a 5.6% increase over the 2021 allocation and come to the usual 2.3% of gross domestic product. The new budget is in response to a surge in Chinese activity in or near the Taiwanese air defense identification zone since mid-2020.