Taiwan’s defense budget for the upcoming year is set to reach a record high of 647 billion New Taiwan Dollars (approximately 21.34 billion US dollars). The Ministry of National Defense of the Republic of China has stated that besides meeting personnel maintenance legal obligations, the focus will be on continuing to promote domestic defense industry development, ensuring equipment maintenance, accelerating the enhancement of asymmetric warfare capabilities, enhancing reserve forces, and improving operational command resilience.
The Executive Yuan of the Republic of China approved the central government budget for the fiscal year 114 (2025) on the 22nd. The overall defense budget is 647 billion New Taiwan Dollars, accounting for approximately 2.45% of the GDP, marking a new high. The budget is set to be submitted to the Legislative Yuan for review before the end of August.
According to a press release from the Ministry of National Defense of the Republic of China, the Executive Yuan has allocated a supervisory budget of 476 billion New Taiwan Dollars (approximately 15.72 billion US dollars) for the Ministry of National Defense for the fiscal year 114, representing an increase of 41.5 billion New Taiwan Dollars (approximately 1.37 billion US dollars) from the previous fiscal year 113 (2024), a growth of around 9.6%. In addition to the special budgets for the procurement of new fighter jets and the enhancement of naval and air capabilities, totaling 90.4 billion New Taiwan Dollars (approximately 2.99 billion US dollars) and 80.6 billion New Taiwan Dollars (approximately 2.66 billion US dollars) respectively from non-operating special funds, the total defense budget is now 647 billion New Taiwan Dollars, accounting for about 2.45% of the GDP.
The Taiwan Ministry of National Defense stated that the defense budget is planned carefully in accordance with defense operational needs, taking into consideration the overall fiscal situation and government policy planning. In the face of changing regional security dynamics, the military will continue to advance various military readiness efforts to ensure national security.
The Taiwan Ministry of National Defense stressed that the budget for the fiscal year 114 will not only meet legal obligations for personnel maintenance but also focus on ongoing development of the domestic defense industry, including the construction of submarines (with a budget of 284.08 billion New Taiwan Dollars for 7 subsequent vessels, spread over the timeline of years 114-127, with an allocation of 2 billion New Taiwan Dollars in the fiscal year 114), ensuring equipment maintenance, accelerating the enhancement of asymmetric warfare capabilities, strengthening reserve forces and operational command resilience, as well as improving the welfare of military personnel, all of which demonstrate a strong commitment to self-defense.
The Ministry of National Defense of Taiwan pointed out that the steady growth in defense budget will facilitate military planning and various administrative initiatives, and urged the public to continue to support these efforts, emphasizing the importance of unity between the military and civilians in safeguarding the homeland.