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Lawrence Chung

Taiwan’s cabinet approved a supplementary defence budget of NT$145.7 billion (US$4.6 billion) on Thursday, pushing the island’s total defence-related spending for this year above NT$1 trillion for the first time.
The additional funding is expected to raise this year’s overall defence spending from 3.32 per cent of gross domestic product (GDP) to about 3.83 per cent, the highest level in decades.
The supplementary budget, which still requires legislative approval, is aimed at plugging gaps left after opposition lawmakers cut NT$470 billion in May from an eight-year NT$1.25 trillion special defence package proposed by the government.
Of the additional funds, NT$133.4 billion would go towards military investment, including missiles, unmanned systems and two classified programmes, according to the cabinet’s approved budget.
Seven projects, including the locally developed Chiang Kung, or Strong Bow, mid-tier anti-tactical ballistic missile system, would receive NT$13 billion, while another NT$55.9 billion would fund three uncrewed-system programmes, including coastal surveillance drones.
Two classified programmes would account for NT$64.5 billion.
Another NT$7.3 billion would be used to replenish urgently needed ammunition, while NT$900 million would fund a tactical network programme designed to integrate intelligence across different operational domains.
The package also includes NT$2.5 billion to expand military recruitment and NT$1.6 billion to broaden combat-unit allowances and eligibility.


Taiwanese Premier Cho Jung-tai said the supplementary funding was necessary because defence procurement could not be allowed to stall after lawmakers reduced the government’s original special defence package.
“Defence cannot afford a gap,” Cho said.
He said the government hoped the additional funding would allow the military to acquire more than 600 coastal surveillance drones, more than 40,000 coastal attack drones and an initial batch of more than 100 small suicide unmanned surface vessels by next year.
Cho stressed that the uncrewed systems were intended to equip specialised units across the island and strengthen Taiwan’s asymmetric warfare capabilities.
The government also hopes orders of those systems will expand local production capacity and establish a “red-free” supply chain that excludes mainland Chinese components.
The supplementary funding would bring Taiwan’s total defence-related expenditure this year from NT$949.5 billion to about NT$1.1 trillion.
The increase comes just two weeks after the cabinet approved a record NT$1.12 trillion defence budget for next year, equivalent to 3.01 per cent of projected gross domestic product (GDP).
Although the 2027 budget figure is only about NT$27.4 billion, or 2.5 per cent, higher than this year’s total after taking into account the supplementary funding, the composition of the two defence spending packages differs.
This year’s supplementary spending is concentrated on urgent procurement, particularly missiles, ammunition and large numbers of relatively inexpensive unmanned systems, according to cabinet officials.
Next year’s budget, by contrast, represents a broader expansion of regular defence spending. Military investment alone is expected to rise by NT$97.5 billion to NT$259.1 billion, covering weapons procurement and programmes including US-made High Mobility Artillery Rocket Systems, F-16V fighters and anti-submarine helicopter maintenance.
Strong Bow will also shift to the regular budget next year, with the defence ministry planning about NT$36 billion for the programme through 2032.
Taiwanese leader William Lai Ching-te has pledged to increase overall defence spending to 5 per cent of GDP by 2030 amid mounting military pressure from Beijing and calls from Washington for the island to spend more on its own defence.
Beijing sees Taiwan as part of China to be reunited by force if necessary. Most countries, including the United States, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-ruled island by force and is committed to supplying it with weapons.


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News

China

Military

The island’s cabinet approves supplementary budget, with heavy investment in missiles, drones and classified programmes


The island’s cabinet approves supplementary budget, with heavy investment in missiles, drones and classified programmes.


UAVs (unmanned aerial vehicles)

United States

William Lai Ching-te

Extra funds push Taiwan’s defence spending past NT$1 trillion for the first time

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The island’s cabinet approves supplementary budget, with heavy investment in missiles, drones and classified programmes

The island’s cabinet approves supplementary budget, with heavy investment in missiles, drones and classified programmes