Taipei: Taiwan's defense spending is set to reach 3.32 percent of its gross domestic product (GDP) in 2026, Premier Cho Jung-tai announced Thursday, emphasizing the nation's dedication to safeguarding its national security.
According to Focus Taiwan, the proposed defense budget for the fiscal year 2026, which includes expenditures for veteran affairs and the Coast Guard, will amount to NT$949.5 billion (US$31.18 billion), representing 3.32 percent of GDP. The announcement was made by Premier Cho during a Cabinet press briefing in Taipei, where he stated that the new calculation method aligns with North Atlantic Treaty Organization (NATO) standards.
Hsieh Chi-hsien, head of the Comptroller Bureau at the Ministry of National Defense (MND), explained that the proposed NT$949.5 billion budget requires legislative approval and signifies an increase of NT$176.8 billion, marking a 22.9 percent rise compared to the previous year. The budget proposal, excluding veteran and Coast Guard expenses, indicates a 20.1 percent increase for the MND alone, amounting to an additional NT$93.8 billion compared to 2025.
The MND highlighted that spending on military investment will grow by NT$23.2 billion, or 16.76 percent, reaching NT$161.6 billion, largely due to arms purchases from the United States. In response to perceived growing threats, expenditure on operational upkeep is expected to rise by 34.82 percent to NT$199 billion, primarily to cover additional ammunition and spare parts.
Personnel costs are projected to remain the largest component of the MND's 2026 budget, estimated at NT$200.8 billion. Hsieh noted that the special budget spending will be approximately NT$186.8 billion, which includes NT$76.8 billion for aircraft and other defense articles purchases, as well as planned Coast Guard system upgrades.
While Hsieh did not provide details on the allocation of the remaining NT$110 billion, he indicated that it includes additional arms purchases initially pledged by President Lai Ching-te in February. The proposal for these additional arms was submitted to the Cabinet for review on August 8, and further details remain unavailable pending the review's completion.
Calls for Taiwan to increase defense spending above 3 percent of GDP have intensified amid rising military pressure from China. Under the Democratic Progressive Party government, the defense budget has ranged between 2 and 2.5 percent over the past nine years. The last instance of defense spending exceeding 3 percent of GDP was in 2009, during the presidency of Ma Ying-jeou of the Kuomintang (KMT).
In February, President Lai Ching-te stated at the Presidential Office that his administration aims for the defense budget to surpass 3 percent of GDP to demonstrate Taiwan's commitment to national defense. His remarks aligned with U.S. President Donald Trump's repeated calls for Taiwan to increase military spending.