TAIPEI (Taiwan News) — Taiwan's Cabinet is expected to present its proposed central government budget for next year on Aug. 20, with defense spending projected to exceed NT$1.1 trillion (US$34.1 billion), or more than 3% of GDP, according to sources familiar with the matter.
Next year's central government revenue is expected to exceed NT$3.8 trillion, a 35.7% increase from this year, while spending will exceed NT$3.6 trillion, a 20% increase, with both reaching record levels, per LTN.
The government is not expected to require new borrowing next year, including to cover debt repayments. Spending on science and technology, major public construction projects, and social welfare is expected to increase significantly, while defense spending is also expected to reach a record level.
Although the exact figures for next year's budget have not been finalized, analysts estimated that defense spending calculated according to NATO standards will exceed NT$1 trillion for the first time and could surpass NT$1.1 trillion.
A special budget of about NT$240 billion is also expected next year, covering three major areas: strengthening Taiwan's resilience to international developments, enhancing asymmetric warfare capabilities, and developing autonomous unmanned vehicles for national defense. Special procurement programs for new fighter jets and enhanced naval and air capabilities expire this year and will be covered by the new special budget, per LTN.
The Directorate-General of Budget, Accounting and Statistics is expected to release its forecast for next year's GDP growth soon. If GDP growth reaches 10%, bringing the economy's total output to about NT$36.8 trillion, defense spending would rise significantly.
