Taiwan defence spending to exceed NT$1 trillion after cabinet approves extra funds

Taiwan’s defence budget will pass NT$1 trillion for the first time after the cabinet approved an additional NT$145.7 billion (US$4.6 billion) in funding.

The supplementary budget would raise defence-related spending from 3.32% of gross domestic product to about 3.83%, the highest level in decades. The proposal still requires approval from the legislature.

The cabinet said the extra money would fill gaps created when opposition lawmakers cut NT$470 billion in May from an eight-year, NT$1.25 trillion special defence package proposed by the government.

Military investment would receive NT$133.4 billion of the new funding. The money would support missiles, unmanned systems and two classified programmes. Seven projects, including Taiwan’s locally developed Chiang Kung, or Strong Bow, mid-tier anti-tactical ballistic missile system, would receive NT$13 billion.

A further NT$55.9 billion would fund three uncrewed-system programmes, including coastal surveillance drones. The two classified programmes would account for NT$64.5 billion of the supplementary allocation.