Taiwanese President Lai Ching-te’s Cabinet has approved a record-high $20.29 billion for its 2025 defense budget, with an allocation of $4.66 billion for arms procurement, including payments for U.S. military equipment purchases.
According to a Defense News report, the budget ratification comes as Chinese intrusions into Taiwanese air space hit an annual record of 1,739 cases in 2024.
Taiwan’s Central News Agency said the total budget, which will be sent to the legislature for approval at the end of August, accounts for 2.45 percent of the self-governing island’s gross domestic product.
Lai, who won an unprecedented third term as Taiwan’s president in January, promised during his election campaign that his administration would target defense spending at 3 percent of GDP.
At a press conference, Lt. Gen. Hsieh Chi-hsien, head of the Ministry of National Defense’s Comptroller Bureau, said that the 2025 budget for military equipment purchases represents a 16 percent increase, with payments due for U.S. arms supplies. The spending plan earmarks $2.84 billion as part of a five-year $7.53 billion special budget for acquiring arms, including F-16V fighters and missiles.
Taiwan’s recent U.S. arms deals include the purchase of attack drones and loitering missiles worth $360 million, which Washington approved in June.