ISTANBUL

Taiwanese Premier Cho Jung-tai said Wednesday that his country is incapable of spending 10% of its gross domestic product (GDP) annually on national defense, according to the Taiwanese Central News Agency.

“It is impossible to allocate more than NT$2 trillion ($60.73 billion) for defense spending, given the current central government's budget scale,” Cho told lawmakers in response to a lawmaker asking what the government would do if the US urged it to increase its defense budget to 10%.

“Currently, Taiwan does not have the capability to allocate a defense budget of NT$2.6 trillion ($78 billion),” he said, adding that the budget would be based on the country's financial capacity and military needs.

Taiwan budgeted NT$3 trillion for the budget for last year and this year, with the largest share allocated to social welfare programs.

Lawmaker Fu Kun-chi said 10% of the GDP would amount to NT$2.68 trillion, based on a 2025 GDP estimate of NT$26.88 trillion, while the original budget for defense was NT$647 billion for 2025, 2.45% of GDP, before budget cuts and freezes in January.

US President Donald Trump said Taiwan should increase its defense budget as much as 10%, which was reiterated by Elbridge Colby, the nominee for defense undersecretary,

Trump “has made the same demand (for defense budget increases) not only of Taiwan but also of many other countries,” Cho said in response.

Taiwan’s leader Lai Ching-te also said a special budget would be proposed to raise defense spending to more than 3% of the GDP, although it is not guaranteed to pass the legislature.

Defense authorities denied allegations by former legislator Kuo Cheng-liang on a recent political talk show, claiming that Washington pressured Taipei to extend compulsory military service from one year to two.

Cho reiterated that there had been no such discussions or requests from the US, emphasizing that “the status quo remains unchanged.”