Taiwan unveils ambitious defence boost, targeting naval and air power

Taiwan plans to allocate NT$90.4 billion (approximately $2.83 billion) in 2025 to enhance the combat capabilities of its Navy and Air Force, and to purchase new fighter jets.

This funding is detailed in the draft budget for 2025 presented by Taiwan's Executive Yuan (cabinet), Caliber.Az reports via foreign media.

Earlier, Taiwan's chief executive Lai Ching-te announced that the draft budget for the coming year includes a record increase in defense spending, totaling NT$647 billion (about $20.25 billion). This will make defence spending the fourth largest budget item, encompassing contributions to funds and an emergency budget.

In 2025, NT$476 billion (about $14.89 billion) will be directly allocated to the defence budget. Additionally, NT$90.4 billion ($2.83 billion) is earmarked as a contingency budget for purchasing new fighter jets and enhancing the combat capabilities of Taiwan's Navy and Air Force. Furthermore, NT$80.6 billion ($2.52 billion) will be allocated to specialized funds for non-operational defence expenses.

This budget represents a NT$46.4 billion (7.7%) increase in defence spending compared to 2024, accounting for approximately 2.45% of Taiwan's GDP. The draft budget must be approved by the Legislative Yuan, Taiwan's highest legislative body before it is finalized.