The Cabinet has approved the central government’s 2017 budget, which includes a 0.5% increase in defense spending.
The defense budget was set at NT$321.7 billion (US$10.2 billion), up NT$1.6 billion (US$50 million) from 2016. The increased budget will allow for more research into defense technologies, as well as the development of indigenous aircrafts and warships.
Premier Lin Chuan said Thursday that the defense ministry will need to make do with only a slight increase to its budget.
"The Unites States expects us to allot a bigger portion of our total budget on national defense, but the goal we have set at this stage cannot reach that point. I need to make it clear to everyone that our policy is very clear," Lin said. "We will have to make do with the budget we have. We have slightly increased the defense budget for the upcoming year. We hope [the defense ministry] will use it where it is needed in order to maintain our national defense capabilities."
Defense minister Feng Shih-kuan recently expressed hope that the Cabinet would increase the budget to NT$400 billion (US$12.7 billion). Premier Lin said that this would mean taking money away from other areas. Lin said he hopes the defense ministry will improve its R&D ability instead of relying on imported arms.