TAIPEI (TVBS News) — Taiwan wants to tap into its substantial fiscal reserves to bolster national defense spending, according to a high-level budget official. Chen Shu-tsu (陳淑姿), minister of the Directorate General of Budget, Accounting and Statistics (DGBAS, 主計總處), revealed Monday (March 24) that the government plans to utilize accumulated surpluses exceeding NT$200 billion (approximately US$6.06 billion) to help achieve its ambitious defense spending target of more than 3% of GDP. The strategy represents a significant financial commitment to Taiwan's security infrastructure amid evolving regional challenges.
The funding strategy comes as legislators express mounting concern over a substantial shortfall in defense appropriations. President Lai Ching-te (賴清德) has repeatedly stressed the necessity of special budget allocations for military preparedness, yet a significant financial gap remains. During recent legislative discussions, Legislator Huang Shan-shan (黃珊珊) quantified the challenge, noting that while current defense expenditures hover around NT$600 billion (approximately US$18.18 billion), reaching the strategic 3% GDP threshold would require nearly NT$800 billion (approximately US$24.24 billion) — revealing a critical funding gap exceeding NT$100 billion (approximately US$3.03 billion).
During a closely watched session of the Legislative Yuan's Finance Committee, Chen Shu-tsu elaborated on the government's fiscal approach alongside Auditor-General Chen Jui-min (陳瑞敏). The budget minister emphasized the administration's strong preference for avoiding debt-financing mechanisms to meet defense targets. Chen stated firmly that the government prefers not to resort to borrowing, though she pragmatically acknowledged that borrowing options remain on the table should existing surpluses prove insufficient to bridge the funding gap completely. The comments reflect Taiwan's cautious approach to balancing security imperatives with fiscal responsibility.
The current budget discussions follow President Lai's February announcement regarding his administration's defense funding priorities. The president declared that special budget allocations for defense would receive top consideration in fiscal planning for 2026, with a stated ambition to push military spending beyond the 3% GDP threshold. This long-term commitment signals Taiwan's recognition of sustained investment requirements in its defense capabilities, establishing the current surplus utilization strategy as part of a broader, multi-year approach to national security funding.
