Su’ao: President Lai Ching-te on Friday pledged to steadily increase defense spending, setting a goal of raising it to 5 percent of gross domestic product (GDP) by 2030, to underscore Taiwan’s commitment to boost defense capacity.

According to Focus Taiwan, Lai made the remarks while addressing Navy personnel aboard a frigate of the 168th Fleet in Su’ao, Yilan County, a day after his Cabinet unveiled the 2026 government budget proposal, which included a record-high defense allocation of 3.32 percent of GDP.

Lai stated that the government will continue to increase defense spending in the future, aiming to reach 5 percent of GDP by 2030, aligning with NATO (North Atlantic Treaty Organization) standards. He emphasized the importance of defending national security and democracy, as well as collaborating with global partners to maintain peace in the Indo-Pacific region.

The proposed 2026 defense budget, which includes expenditures for veteran affairs and the Coast Guard, is set to reach NT$949.5 billion (US$31.08 billion), or 3.32 percent of GDP, pending approval by the Legislature.

In his address, Lai also discussed the absence of a pay raise for military personnel in the 2026 government budget proposal. This omission comes despite a newly amended Pay Act of the Armed Forces passed by the opposition-controlled Legislature in June, which set minimum monthly salaries for volunteer soldiers between NT$30,000 and NT$15,000, based on rank, and raised conscripts’ pay to the NT$28,590 minimum wage.

The Democratic Progressive Party-controlled Executive Yuan has submitted a request for the Constitutional Court to review whether the amendment is unconstitutional, due to its failure to specify a funding source for the budget increase. Lai noted that the government will wait for a constitutional ruling before allocating the budget, should the amendment be deemed constitutional.