The Cabinet on Friday approved cutting the Ministry of National Defense’s fiscal 2018 budget by NT$3.9 billion (US$129.2 million) to NT$327 billion.
The budget cut trims 0.5 percent, or NT$760 million, from personnel fees and 2 to 4 percent, or NT$3.1 billion, from operational costs, along with other cuts, the ministry said.
After the cuts, the budget will comprise 1.84 percent of GDP, the ministry said.
Taking into account the NT$35.4 billion that would be injected into the pension fund for retired officers — due to a pledged 3 percent salary increase for military personnel, teachers and civil servants — military expenses for fiscal 2018 would take up 2.07 percent of GDP.
The air force’s budget was slashed, as less funds were allocated to upgrade the nation’s F-16A/B jets to F-16Vs, a plan to purchase parts for C-130 cargo planes was scrapped and adjustments were made to the budget for the Tien Kung III (Sky Bow III) surface-to-air missile system, the ministry said.
The research into the Tien Kung III missile system, which began in 2015, is scheduled to run into 2024, with a total budget of NT$68.6 billion, the ministry said.
The F-16 jet upgrade, starting in 2012, is expected to be completed by 2023, with a total budget of NT$129 billion, the ministry said.
The ministry said the budget cuts for fiscal 2018 would not affect the projects’ original completion dates.
The air force’s budget would not be reduced greatly as the ministry has transferred funds originally allotted to the army, it added.
The army’s funding has shrunk by NT$135 million, as it is transferring the Tactical Reconnaissance Wing, which flies uncrewed aerial vehicles, to the navy, the ministry said, adding that the navy’s budget has increased by NT$107 million.
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