Taipei: Taiwan announced that its defense spending for 2026 will rise sharply to NT$949.5 billion (about US\$31.27 billion), amounting to 3.32 percent of the island’s GDP. This marks the highest share of national output allocated to defense since 2009, as Taipei faces mounting military pressure from China and growing calls from the United States to strengthen its defenses.
The Ministry of National Defense confirmed that the new budget reflects both an expanded scope of defense responsibilities and increased operational needs. For the first time, coast guard expenditures will be fully integrated into the defense budget, reflecting their critical role in maritime security and potential wartime support. Veterans’ affairs and special defense projects have also been incorporated into the framework, bringing the system closer to NATO’s comprehensive model of defense spending.
According to official figures, the ministry’s core budget alone will rise by 22.9 percent compared to last year. Operational upkeep, which includes ammunition and spare parts, will increase by nearly 35 percent to NT$199 billion, while military investment will grow by almost 17 percent to NT$161.6 billion, much of it dedicated to U.S.-purchased arms. Personnel costs remain the largest share at NT\$200.8 billion. In addition, a special allocation of NT$186.8 billion is planned, with NT$76.8 billion earmarked for aircraft and defense assets and NT$110 billion for further arms purchases pledged by President Lai Ching-te earlier this year.
The sharp increase comes as China continues to escalate military activity near Taiwan through frequent air incursions and maritime maneuvers. Beijing has also raised its 2025 defense budget by 7.2 percent to approximately US\$248 billion, underscoring the imbalance in military capabilities across the Taiwan Strait.
The United States has consistently urged Taiwan, along with its European allies, to invest more in its own defense. Washington argues that a stronger self-defense capability is crucial to regional security and deterrence. Taiwan’s latest move brings its defense spending in line with NATO’s 2 percent of GDP target and beyond, although it still falls far short of China’s absolute spending power.
The proposal now awaits detailed Cabinet approval and legislative debate, where it will test Taiwan’s political consensus on defense strategy. If enacted, the budget will mark a significant milestone in Taiwan’s effort to modernize its forces and strengthen readiness in the face of growing external threats.