The Executive Yuan of the Republic of China passed the Central Government’s Annual Budget for the 115th year (2026) today, with the defense budget set at NT$949.5 billion (approximately US$31.82 billion), accounting for 3.32% of GDP, representing an increase of NT$176.8 billion from the current year with a growth rate of 22.9%.
President of the Republic of China, Lai Ching-te, launched the “Ten Talks of National Unity” speech series, with the fourth session held in Taipei on July 1st, focusing on the topic of “national defense.” In response to the increasing defense budget of the Chinese Communist Party, Lai Ching-te mentioned that during the Ma Ying-jeou administration, the defense budget did not increase but decreased annually, leading to a defense budget GDP ratio dropping to around 2%. Upon taking office, he announced the goal of raising the defense budget to over 3% of GDP, demonstrating the commitment to safeguarding the country.
Premier of the Republic of China, Cho Rong-tai, presided over the Executive Yuan meeting today, where the Annual Central Government Budget for the 115th year was approved based on reports from the Directorate-General of Budget, Accounting, and Statistics, along with the budget for affiliated units and the financial summary. It will be submitted to the Legislative Yuan for review by the end of August. The total revenue is budgeted at NT$2.8623 trillion, total expenditure at NT$3.35 trillion, with a shortfall of NT$172.7 billion, in addition to debt repayment of NT$126.5 billion, requiring financial resources adjustment totaling NT$299.2 billion, all to be supported through borrowing.
Regarding the defense budget, Director of the Budget Department of the Directorate-General of Budget, Accounting, and Statistics, Hsu Yung-yi, indicated that for the Fiscal Year 115, the Ministry of National Defense’s spending is budgeted at NT$561.4 billion, including special budgets that have been allocated or are planned to be allocated amounting to NT$186.8 billion, non-operating special funds of NT$65.4 billion, and considering NATO standards, the Coast Guard Administration budget of NT$29.5 billion and retirement benefits for veterans of NT$106.4 billion, totaling the defense expenditure for the year to NT$949.5 billion, accounting for 3.32% of GDP, highlighting Taiwan’s effort to enhance its self-defense capabilities.
Within the Fiscal Year 115 defense budget of NT$561.4 billion, allocations include NT$161.6 billion for “military investment,” NT$199 billion for “operation maintenance,” and NT$200.8 billion for “personnel maintenance,” representing an increase of NT$93.8 billion from Fiscal Year 114 (2025), roughly a 20.1% increase.
Hsu Yung-yi added that in comparison to the current fiscal year, the increase in “military investment” is mainly to accommodate payment schedules for military procurement projects, leading to an additional allocation of NT$23.2 billion. The rise in “operation maintenance” is due to enhancing ammunition and spare parts in response to security threats, resulting in a hike of NT$51.4 billion. The increase in “personnel maintenance” is linked to various salary adjustments for military personnel approved by the Executive Yuan, totaling an extra NT$19.2 billion.
Regarding the allocated and planned special budget of NT$186.8 billion, Hsu Yung-yi specified that aside from the purchase of new fighter jets amounting to NT$39.9 billion and a plan to enhance maritime and aerial capabilities costing NT$29.3 billion, there is a planned special budget of NT$117.6 billion.
Director of the Budget Office of the Ministry of National Defense, Hsieh Chi-hsien, mentioned that of the allocated special budget of NT$117.6 billion, NT$7.6 billion is designated for the Coast Guard Administration’s homeland security and defense resilience budget, while the remaining NT$110 billion is divided into two parts: the Ministry of National Defense’s homeland security and defense resilience special budget and the defense resilience special budget (commonly known as the military procurement special budget), with the latter already under review by the Executive Yuan as of August 8th, pending final approval before disclosure.