The move was "another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security, the stability and security of the Indo-Pacific region, and our shared responsibility with the world," Premier Cho Jung-tai told a news conference.

The proposed spending needs to be approved by the opposition-controlled parliament before it can take effect.

Taiwan's cabinet has allocated NT$949.5 billion (US$31.1 billion), or 3.23 percent of GDP, for defence spending next year, Cho said.

"Our total defence budget is calculated using NATO's model and standards, including the budget for... the coast guard," he said.

Taiwan has ramped up investment in military equipment and weapons over the past decade as China intensified pressure on the democratic island, which Beijing claims is part of its territory.

The China-friendly Kuomintang party which controls the legislature with the help of the Taiwan People's Party, cut the government's 2025 budget and froze some defence spending.