Taiwan Defense Budget Exceeds NT$1 Trillion for First Time

President Lai Ching-te announced that Taiwan's defense budget will exceed NT$1 trillion for the first time, accounting for approximately 29 percent of total government expenditure. The spending plan focuses on defense self-reliance, the military industrial sector, artificial intelligence, and unmanned vehicles. Lai stated that enhancing deterrent power is the only way to ensure national security and regional peace.

To reach this milestone, Taiwan's cabinet approved a supplementary defense budget of NT$145.7 billion on September 3. This additional funding raises total defense spending to approximately 3.83 percent of gross domestic product, the highest level in decades. The supplementary funds target missiles, drones, and two classified programs totaling NT$64.5 billion, filling gaps left after opposition lawmakers cut NT$470 billion from a proposed eight-year special defense package in May. The supplementary budget now awaits legislative approval.

China's State Council Taiwan Affairs Office denounced the spending as a result of a separatist stance. Spokeswoman Zhang Han claimed the budget increase squanders public funds and recklessly incites cross-strait confrontation, warning that such efforts will bring grave disaster to the people of Taiwan.