Taiwan is sharply raising military spending next year, a clear signal to Beijing but also a heavy new burden on the island's finances.

• The Cabinet approved defense spending of NT$1.12 trillion for next year, up NT$173 billion from this year.
• That works out to 3.93% of the economy under last year's growth estimate, and still 3% under the newer one.
• Weapons buying takes the biggest jump, rising by NT$97.5 billion, with more money also going to ammunition, spare parts and troop pay.
• Ten arms projects that lawmakers cut from the special budget, including the homegrown Chiang Kong missile, will be restored through an extra budget this year.
• Two new special budgets are planned for asymmetric weapons and locally built drones.

Outlook: The package now goes to lawmakers, where the restored missile and drone programs are likely to be the main fight.