TAIWAN-DEFENCE
Taiwan's Executive Yuan has submitted a supplementary budget of NT$607.6 billion, which has entered the Legislative Yuan's committee review stage. Of this, NT$145.7 billion is allocated for defense purposes, including the procurement of drones, unmanned surface vehicles, and air defense systems. (Image source: Central News Agency)

The Executive Yuan’s proposed NT$607.6 billion supplementary budget formally entered the Legislative Yuan’s committee review process on November 3, after Premier Cho Jung-tai reported on the proposal and answered lawmakers’ questions. Defense-related spending accounts for NT$145.7 billion, covering coastal attack drones, reconnaissance drones, unmanned surface vessels and new air defense systems, making it a major focus of the budget review.

According to a report by Focus Taiwan, the supplementary budget was proposed under the framework of the 2026 central government general budget and totals NT$607.6 billion. The Executive Yuan said the spending would cover defense, energy supplies and other government policy initiatives.

Of the defense allocation, NT$55.9 billion would be used to procure three types of unmanned systems: coastal attack drones, coastal reconnaissance drones and small one-way unmanned surface vessels. The government hopes the equipment will strengthen coastal surveillance, intelligence gathering and asymmetric warfare capabilities.

The proposal also includes NT$13 billion for seven projects, including the Strong Bow medium-range ballistic missile defense system. Developed by Taiwan’s National Chung-Shan Institute of Science and Technology, the system forms part of Taiwan’s efforts to strengthen its air defense and missile defense capabilities.

The report said another NT$64.5 billion in the supplementary budget has been classified. It has been speculated that the funding could involve portions of Taiwan-U.S. joint development projects previously cut by the Legislative Yuan, but its actual purpose will depend on the government’s official explanation.

Outside defense spending, the largest single allocation in the proposal is NT$233.8 billion for CPC Corp., Taiwan, to cover operating expenses and costs arising from the energy price stabilization policy. The government has also allocated NT$11.1 billion for pay adjustments for military personnel, civil servants and public school teachers, as well as some other government employees.

The budget proposal must still undergo item-by-item review and a vote in the Legislative Yuan. How to balance defense spending, energy subsidies and the government’s fiscal burden is expected to be a key issue in negotiations between the ruling and opposition camps.