Taiwan proposes 12.9% on-year rise in defence spending for 2023

TAIPEI: Taiwan unveiled a proposed 12. 9 per cent year-on-year increase in its defence budget for 2023 to T$415. 1 billion (US$13. 72 billion) on Thursday (Aug 25) amid stress with China, which has sharply increased army activities near the democratically governed island.

China, which usually claims Taiwan as the territory despite the strong objections of the govt in Taipei, carried out its largest-ever army exercises around the island after a visit this month by US House Speaker Nancy Pelosi.

On top of the proposed budget, Taiwan President Tsai Ing-wen’s Cabinet can be proposing an additional T$108. 3 billion in spending for jet fighter jets and other tools.

The suggestion, which is a record high and must be given the green light by parliament, marks the island’s sixth consecutive year of development in defence investing since 2017.