Taipei: Taiwanese President Lai Ching-te announced that his administration will introduce a significant supplementary defense spending package amounting to nearly $40 billion, underscoring Taipei’s determination to strengthen its military posture amid sustained pressure from China. Speaking during a session of Taiwan’s ruling Democratic Progressive Party, President Lai said the additional budget equivalent to 0.6% of the island’s GDP reflects the urgent requirement to reinforce Taiwan’s deterrence capabilities, expand operational readiness, and bolster the resilience of its armed forces. According to Lai, the supplementary funds will be presented to lawmakers for approval in mid-December, marking one of the most substantial single-year increases in Taiwan’s recent defense history.
In his remarks, President Lai emphasized that the Taiwan Strait is facing one of its most challenging security environments in decades, citing rising military activity by Beijing and the need for Taiwan to accelerate its own preparedness. He reiterated that defending the island’s sovereignty, safeguarding peace, and maintaining regional stability remain central to his administration’s policy priorities. Lai added that Taiwan would continue enhancing cooperation with like-minded democracies to ensure a stable Indo-Pacific order, while also focusing on developing indigenous technologies to reduce dependence on foreign military supplies and strengthen long-term defence sustainability.
The new proposal comes two months after Taiwan approved a comprehensive defence budget for 2026 and builds on several other initiatives, including investments in drone development, missile production, cyber defense systems, and maritime surveillance networks. Defence experts say the upcoming supplementary package could help Taiwan address critical gaps in ammunition reserves, air-defense assets, naval capabilities, and asymmetric warfare tools.
President Lai’s announcement arrives at a moment when cross-strait tensions remain elevated, with China continuing to conduct large-scale drills and assertive patrols near Taiwan’s air and maritime boundaries. As the legislative process moves forward, the proposal is expected to spark extensive political debate, but the government maintains that the escalation of regional security risks leaves little room for delay.