Taiwan Announces 40B Defense Budget Over 8 Years

Taiwanese President Lai Ching-te announced on Wednesday a supplementary defense budget of 40 billion over eight years to strengthen the island's military capabilities against potential threats from China. The plan, unveiled during a news conference in Taipei, aims to fund arms purchases from the United States and develop advanced defense systems, including a multilayered air defense network known as TDome.

Lai, who leads the Democratic Progressive Party, described the initiative as essential for safeguarding Taiwan's democracy and sovereignty. "The ultimate goal is to establish defense capabilities that can permanently safeguard democratic Taiwan," he said, emphasizing innovation and technology as key pillars. The budget, spanning 2026 to 2033, will support precision-strike missiles, asymmetrical warfare enhancements, and joint development projects with the United States. It supplements the government's proposed 949.5 billion New Taiwan dollars, or about 30 billion, for regular defense spending in 2026, which represents 3.32 percent of gross domestic product and marks the first time exceeding 3 percent since 2009.

The announcement follows months of pressure from the United...