Taiwan defence ministry warns of 'serious impact' to security under new funding laws

Taiwan's defence ministry warned of "serious impact" to security after opposition parties passed laws that will require a cut in defence spending of some T$80 billion ($2.45 billion) at a time when the island is facing elevated Chinese military threat.

Taiwan's opposition parties, which hold a majority in parliament, last week passed legislation to shift spending from the central government to local municipalities, a move strongly contested by the ruling Democratic Progressive Party (DPP) and thousands of protesters.

In a statement late on Wednesday, the defence ministry said it might need to cut its defence budget plan by 28% for next year, equivalent to around T$80 billion, to meet the new funding requirements

"It is set to deliver a serious impact to the national forces' military build-up and combat preparedness," the ministry said. "Major weapon equipments will not be continued to upgrade and it will be difficult to make payments to purchased items according to contracts, resulting in delays or cancellations."

The ministry said the defence budget for next year accounted to around 2.4% of Taiwan's GDP, but the possible cut will take it down to below 2% even as countries in the region are increasing defence spending.

"How do we persuade international friends to help us in critical moment when the enemy is invading us?" the ministry said.

China, which views democratically-governed Taiwan as its own territory, has ramped up its military pressure in recent years to assert those claims, which Taipei strongly rejects.

National Security Council Secretary-general Joseph Wu told reporters on Wednesday more discussions are needed as the budge cut will lead to "serious consequences". He did not elaborate.

"It will send a wrong message that Taiwan does not want to defend itself. Seeing that, like-minded countries might not want to help our nation."

The cabinet in August proposed a 7.7% year-on-year rise for defence spending to T$647 billion, a record high for Taiwan as the island adds more fighter jets and missiles to strengthen deterrence against the rising threat from Beijing.

The DPP lost its parliamentary majority in January elections and is in a stand off with the opposition on several issues.