Taiwan proposes USD4.6 billion addition to defence budget

If enacted, Taiwan's 2026 supplementary defence budget would raise total defence expenditure to about TWD1.2 trillion. (Janes Defence Budgets)

Taiwan has proposed a supplementary defence budget request of TWD145.7 billion (USD4.6 billion) to procure unmanned aerial vehicles (UAVs) and new surface-to-air defence systems.

Taiwan's Cabinet announced on 3 September that the supplementary budget, which is pending legislative approval, would fund weapons procurement and combat-unit supply requirements to enhance the island's operational defence capabilities.

Huang Wen-chi, head of the Ministry of National Defense's (MND's) Department of Strategic Planning, said the supplementary defence budget was proposed after opposition parties cut TWD470 billion from the Cabinet's TWD1.25 trillion special defence budget in May, according to state-owned Central News Agency (CNA).

Huang said the supplementary budget reflected the military's force-buildup schedule.

Of the additional funding, the Cabinet allocated TWD133.4 billion for military investment. This comprises TWD13 billion for seven programmes, including a medium-range anti-tactical ballistic missile system; TWD55.9 billion for three programmes, including coastal surveillance and reconnaissance UAVs; and TWD64.5 billion for two classified programmes.

In addition to coastal surveillance and reconnaissance UAVs, Taiwan plans to procure coastal attack UAVs and small one-way unmanned surface vessels (USVs). The Cabinet identified these as critical asymmetric warfare capabilities requiring urgent implementation.

According to the proposal, Taiwan plans to procure more than 600 coastal surveillance and reconnaissance UAVs, more than 40,000 coastal attack UAVs, and an initial batch of more than 100 small one-way attack UAVs. These acquisitions are intended to provide the initial operational capability needed to establish specialised UAV units across each theatre command.