TAIPEI (Taiwan News) — Taiwan will raise its defense spending to 3.32% of GDP next year if the legislature approves it, a potential increase of over 20% to the defense budget.

The announcement came from Premier Cho Jung-tai (卓榮泰) as part of the Cabinet’s release of its draft budget, per Reuters. Cho said the 2026 defense budget would hit NT$949.5 billion (US$31.27 billion), marking the first time it has surpassed 3% of GDP since 2009.

“It demonstrates in concrete terms to the world and our own people that we are determined and able to safeguard our sovereignty and security,” the FT quoted Cho as saying to reporters at the budget’s unveiling. Taiwan’s military scrambles jets and other assets daily to counter the growing threat that China’s gray-zone tactics present to its sovereignty.

The higher spending reflects Taiwan’s adoption of the “NATO model” for calculating defense expenditures, which includes the Coast Guard and veterans’ benefits. The expanded budget also includes special appropriations for the procurement of fighter jets and naval upgrades.

The move may be at least partially intended to placate politicians in Washington, where President Donald Trump has sent mixed signals on his support for Taiwan as compared to former President Joe Biden, who repeatedly said he would defend it.

The final defense budget will require the approval of the legislature, which is controlled by parties opposed to the executive leadership.