Taiwan’s biggest defence budget includes US$1.4 billion for new warplanes

Name: Why has the relationship between the Chinese mainland and Taiwan taken a turn for the worse?
Uploaded: 2021-08-26T12:30:30.000Z
Duration: 10 min 22 s
Description: Why has the relationship between the Chinese mainland and Taiwan taken a turn for the worse?

But the US$16.8 billion in overall military spending is a modest 5.2 per cent increase from 2021

The island is seeking to boost its defences as it faces growing threats from the People’s Liberation Army

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A Taiwanese air force F-16V fighter jet takes off during a drill. The island has announced a special budget for new warplanes. Photo: EPA-EFE

Lawrence Chung

Published: 8:30pm, 26 Aug 2021Updated: 11:38pm, 26 Aug 2021

Taiwan has unveiled a record NT$471.7 billion (US$16.8 billion) defence budget for next year, as the democratic island comes under growing pressure and military intimidation from Beijing.

The spending boost “to strengthen our national security” includes a special budget of NT$40.1 billion for new warplanes, cabinet spokesman Lo Ping-cheng said on Thursday, without giving further details of the aircraft.

Taiwan is seeking to bolster the island’s defences against increasing threats from the People’s Liberation Army, which has stepped up drills near the island, including sending warplanes into its air defence identification zone as tensions rise across the strait. Beijing sees Taiwan as part of its territory and has not renounced the use of force to bring the island under its control.

But while President Tsai Ing-wen’s cabinet approved the island’s biggest defence budget yet on Thursday, the increase of NT$23.3 billion – or 5.2 per cent – for the year starting in January marks modest growth from 2021.

Taiwan’s military spending will account for 15.7 per cent of the government’s overall budget of NT$2.26 trillion for next year, and it represents about 2.1 per cent of the island’s GDP forecast for 2022. That is still well short of the 3 per cent target set by Tsai as she seeks to modernise the island’s military.

10:22

Why has the relationship between the Chinese mainland and Taiwan taken a turn for the worse?

The budget proposed by the defence ministry includes NT$59 billion for non-business operations, according to the Directorate General of Budget, Accounting and Statistics.

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