Taipei Times
Date: Sep 25, 2017
By: Aaron Tu and Jake Chung  /  Staff reporter, with staff writer

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.    [FULL  STORY]