Friday, August 05, 2005

Budget call for increased military spending

After years of falling defense budgets under the KMT and the DPP, the Cabinet's proposed budget calls for increasing military spending and reduced public construction.

In order to safeguard Taiwan's territory and to enhance self-defense capabilities, the military budget should be increased year by year, President Chen said.

National defense spending is projected to reach three percent of the gross domestic product within three years.

In addition, a proposed NT$480 billion arms purchase could be included in the regular annual budget.

President Chen also said that foreign aid and investment in friendly countries and should be increased in the annual budget, in light of China's aggressive efforts to isolate Taiwan.

As in recent years, the planned expenditure on the public construction was reduced.

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