TAIPEI (Taiwan News) — Taiwan’s proposed 2025 defense budget, which would set a record at NT$647 billion (US$20 billion), ignited a fiery debate in the Legislative Yuan on Friday (Aug. 16).

The Cabinet's proposal allocates 2.6% of Taiwan’s Gross Domestic Product (GDP) to defense, setting a new high for total spending. The Kuomintang (KMT) expressed concerns that this budget could limit resources for other areas, while the Democratic Progressive Party (DPP) argued that it reflects Taiwan’s commitment to self-defense, per Radio Taiwan International.

KMT Legislator Lo Chih-chiang (羅智強) said in an interview that there needs to be a balance between military and civil spending. He noted that the proposed NT$647 billion budget is more than double the NT$300 billion allocated during former President Ma Ying-jeou’s (馬英九) administration.

In response, DPP caucus leader Wu Szu-Yao (吳思瑤) pointed out that Taiwan's defense spending as a percentage of GDP is moderate compared to other Organisation for Economic Co-operation and Development (OECD) countries. Wu criticized the KMT for focusing on defense spending rather than looking at China and its aggressions. 

Taiwan People’s Party (TPP) Legislator Lin Yi-chun (林憶君) supported increasing the defense budget. However, she noted that Taiwan has not yet met the 3% of GDP goal pledged by former President Shui-bian (陳水扁) and faces ongoing challenges with defense reform.

The debate gained traction following comments by former President Donald Trump, who on July 16, suggested Taiwan should increase its defense budget. In response, Ma said on Aug. 4 that if defense spending were viewed as protection fees, it could become a financial drain, per CNA.

DPP Legislator Wang Ting-yu (王定宇), on Aug. 5, referenced Ma’s presidency and argued that Ma should recognize the need to boost defense spending in light of China's increased military expenditure. Wang's view was echoed by Wu, who said that defense spending includes both domestic development and foreign arms procurement.