Taiwan plans to spend NT$550 billion ($18 billion) to bolster the island's resilience, including aid for industries affected by US tariffs and strengthening its defenses against Chinese threats.
The special budget bill was approved Thursday, but the opposition-controlled parliament still needs to approve it before it can take effect, according to AFP.
The package includes funds to support industries affected by the 20% US tariffs and cash handouts for citizens, as well as about NT$150 billion to fund defense projects, including the purchase of coast guard patrol boats, the manufacture of drones, and the development of military systems.
This comes after President Tsai Ing-wen said last month that Taiwan's defense spending is expected to reach 5% of GDP by 2030. His government also announced plans to increase the 2026 defense budget to 3.32% of GDP
