Next Year's Defense Budget to Break Trillion for First Time; Lai Ching-te Reveals Two Major Force Strategies

Taiwan's defense budget is set to surpass 1 trillion New Taiwan dollars for the first time in the upcoming fiscal year, signaling a significant increase in military spending amid evolving security challenges in the Taiwan Strait. President Lai Ching-te announced the landmark figure while presiding over a promotion ceremony for six generals.

Lai emphasized the government's commitment to bolstering national defense through indigenous development and the growth of the military industry. Key areas of investment will include artificial intelligence and unmanned vehicles, aiming to build a more capable and resilient military force. The president stated that every defense dollar will be transformed into "dependable defense capabilities."

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Facing rapid changes and complex Taiwan Strait security challenges, the overall defense budget for next year will exceed one trillion yuan for the first time.

The ceremony recognized the promotion of Lieutenant General Li Chun-cheng to lead the Marine Corps Command, with Lai urging him to leverage his experience in amphibious and joint warfare to enhance the corps' critical role in national defense. Promotions to Major General included Wu Chih-sheng, Hsu Hung-ming, Li Ssu-hsien, Tai Chih-wei, and Ho Chih-wei, each tasked with specific responsibilities ranging from Eastern defense resilience to maritime security and joint training.

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The government will continue to implement indigenous defense development and develop the military industry, strengthening emerging capabilities such as artificial intelligence and unmanned vehicles to build a more capable and resilient military.

Lai stressed the importance of joint operations and cross-agency coordination to ensure rapid response and effective operations during critical moments. He also highlighted personnel welfare, noting the addition of a new combat troop allowance of NT$4,000 per month for eligible personnel, including conscripts serving in combat units. This move, along with previous salary increases for civil servants, military, and teachers, aims to boost morale and retain talent.

The president underscored that equipment alone does not create combat power; training and trust are essential. He urged the newly promoted generals to connect with their troops, understand their needs, and foster a team environment built on mutual trust and support to safeguard national security and democratic values.

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Equipment needs training to form combat power, and troops need trust to build morale.