Overview
- The Cabinet approved and publicly proposed the NT$1.1225 trillion defence budget on Aug. 20, which would push defence spending to about 3.01 percent of GDP and is the first annual total above NT$1 trillion.
- The plan breaks down into NT$691.9 billion for the Ministry of National Defense, NT$218.2 billion in special procurement budgets, NT$60.7 billion in nonprofit special funds, NT$103.8 billion for military pensions, and NT$47.9 billion for the Coast Guard.
- Officials say a large share of the increase is needed to meet payment and delivery schedules for major U.S. systems such as F-16V fighters and HIMARS rockets and to speed purchases of drones, missiles, and an indigenous submarine program.
- The package now goes to an opposition-controlled Legislative Yuan for review before the end of August, where lawmakers who delayed last year’s budget could cut amounts or slow disbursements and affect procurement timelines.
- The proposal reflects Taipei’s multi-year push to strengthen deterrence after near-daily PLA air and maritime activity since 2022 and ties to President Lai’s pledge to raise defence spending toward 5 percent of GDP by 2030.