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

Taiwan's cabinet approved a supplementary defence budget of NT$145.7 billion on Thursday, surpassing the island's total defence-related spending for the year to exceed NT$1 trillion for the first time. This increase will raise overall defence spending to about 3.83 per cent of gross domestic product (GDP), the highest level in decades.

The budget, which still needs legislative approval, aims to fill gaps left after opposition lawmakers reduced an eight-year NT$1.25 trillion special defence package by NT$470 billion in May. The additional funds would go towards military investment, uncrewed-system programmes, classified programmes, ammunition replenishment and combat-unit allowances.

Premier Cho Jung-tai stated that the supplementary funding was crucial as defence procurement could not be allowed to stall after lawmakers cut the original special defence package. He also expressed hope that the additional funding would allow Taiwan to acquire over 600 coastal surveillance drones, more than 40,000 coastal attack drones, and an initial batch of over 100 small suicide unmanned surface vessels by next year, thereby enhancing the island's asymmetric warfare capabilities.