Overview
- Total defense-related spending is proposed at NT$949.5 billion for 2026, a NT$176.8 billion increase year on year, with the Ministry of National Defense’s core budget up 20.1% (+NT$93.8 billion).
- The Cabinet introduced a NATO-style accounting method that includes Coast Guard and veterans’ expenditures in the headline total.
- Special allocations of NT$117.6 billion are planned, including NT$7.6 billion for the Coast Guard, alongside Foreign Military Sales and homeland security resilience budgets.
- Taipei plans higher payments for U.S. arms and greater readiness spending, with operational upkeep rising 34.82% to NT$199 billion and military investment reaching NT$161.6 billion.
- President Lai pledged to raise defense spending to 5% of GDP by 2030, while the government seeks court review of a legislated military pay hike that was not funded in the 2026 proposal.