Taiwan proposes 2024 defence budget of USD19 billion

Growth in Taiwan's defence expenditure is forecast by JDB to slow down in the next few years. JDB figures include funding for veterans' affairs and other defence funds. (Janes Defence Budgets)

Taiwan's government has proposed a defence expenditure of TWD606.8 billion (USD19 billion) for 2024, the Executive Yuan said on 24 August.

According to Janes Defence Budgets (JDB), the year-on-year growth in total spending is about 3%, a slowdown compared with recent years.

The funding for 2024 includes Taiwan's core defence budget and ‘special' funds allocated for military procurement and other activities.

According to the government's Directorate-General of Budget, Accounting and Statistics (DGBAS), the core defence budget for 2024 will be TWD440.6 billion, a year-on-year increase of TWD31.4 billion or 7.7%.

A special budget for procurement will receive TWD94.3 billion, which represents a decline on this appropriation in 2023.

The special budget is used to finance Lockheed Martin F-16V fighter aircraft on order from the United States as well as other enhancements in naval and air combat capability including new guided missiles.

An allocation termed non-operating special funds – believed to pay for military infrastructure, housing, and defence production – will receive TWD71.9 billion, said DGBAS.

In comments published by Taiwan's state-run Central News Agency (CNA), Taiwan's Deputy Defence Minister Alex Po said much of the funds for procurement in 2024 would pay for equipment already ordered from the US government.

This includes 66 F-16V fighter aircraft, ordered in 2019 for USD8 billion. Deliveries of these aircraft are scheduled for later in 2023 or 2024.