TAIPEI (TVBS News) — Taiwan's cabinet approved a record NT$949.5 billion (around US$31.2 billion) defense budget Thursday (Aug. 21), representing 3.32% of GDP amid escalating regional tensions. The Ministry of National Defense's (國防部) Comptroller Bureau (主計局) announced the massive allocation includes NT$117.6 billion (around US$3.9 billion) in special funding. Officials designated NT$7.6 billion (around US$250 million) for the Coast Guard Administration (海巡署) and NT$110 billion (around US$3.6 billion) for core military operations.
The defense ministry's special budget combines "Homeland Security Resilience" (國土安全防衛韌性特別預算) and "Defense Resilience" (防衛韌性特別預算) programs, commonly known as military procurement funding. Taiwan's cabinet continues reviewing the draft military procurement ordinance that officials submitted Aug. 8 for legislative approval. Executive Yuan spokesperson Michelle Lee (李慧芝) promised detailed explanations once cabinet ministers reach final decisions on the comprehensive defense spending package.
The defense ministry's 2024 fiscal year budget reached NT$561.4 billion (around US$18.5 billion), marking a substantial 20.1% increase from previous allocations. Total defense spending, incorporating NT$179.2 billion (around US$5.9 billion) in special budgets, climbed to NT$740.6 billion (around US$24.4 billion), representing a dramatic 32.7% surge. Including NT$65.4 billion (around US$2.2 billion) in non-profit special funds, comprehensive defense expenditure totaled NT$806 billion (around US$26.5 billion), accounting for 2.82% of GDP.
Taiwan's budget statistics agency noted that social welfare spending for fiscal year 115 totals NT$831.8 billion (around US$27.4 billion), exceeding the NT$697.3 billion (around US$22.9 billion) general defense allocation. The Directorate-General of Budget, Accounting and Statistics (主計總處) emphasized that the comprehensive NT$949.5 billion (around US$31.2 billion) defense figure incorporates special budgets and funds distinct from standard social welfare expenditures. ◼ (At time of reporting, US$1 equals approximately NT$30.4)
