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

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Taiwan’s Strong Bow anti-ballistic missile system is among the programmes that will receive funding under a supplemental defence budget approved by the cabinet on Thursday. Photo: NCSIST

Lawrence Chungin TaipeiPublished: 10:00pm, 3 Sep 2026Updated: 10:16pm, 3 Sep 2026

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.

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