TAIPEI (TVBS News) — The Ministry of National Defense (MND, 國防部) announced on Thursday (Dec. 26) that the passage of the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) could slash the defense budget by over NT$80 billion. The MND warned that the reduction may impact military investments and personnel benefits.
MND Deputy Minister Hsu Yen-pu (徐衍璞) emphasized that all budgets align with operational needs and urged bipartisan support. Hsu noted that if the budget decreases, defense spending as a percentage of GDP will drop from 2.4% to 2%, affecting military salary adjustments.
Regarding the indigenous submarine program, Hsu mentioned that the military had explained the budget to the Foreign and National Defense Committee (立法院外交及國防委員會) and planned to allocate NT$2 billion in 2025 for preparatory work. Hsu respected scholars' suggestions to divide the budget into three phases but expressed hope to follow the Navy's original plan to execute submarine construction contracts in three stages.
The Executive Yuan (行政院) estimated a 28% budget cut, potentially affecting weapons development, procurement, and responses to Chinese aircraft circling Taiwan, damaging Taiwan's international image.
