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Taiwan Cabinet Approves NT$145.7 Billion Supplementary Defence Budget to Boost Drone and Missile Capabilities

The Taiwan cabinet approved a supplementary defence budget of NT$145.7 billion (US$4.6 billion) to address funding gaps left by opposition lawmakers. This additional funding will increase the island's total defence spending for the year to over NT$1 trillion, marking the highest level in decades. The budget is intended to plug gaps after the opposition cut NT$470 billion from a proposed special defence package in May. The new spending plan includes NT$55.9 billion for three types of uncrewed systems: coastal attack drones, coastal reconnaissance drones, and small one-way unmanned surface vessels. The government plans to acquire over 40,000 coastal attack drones and 600 coastal reconnaissance drones by 2027. The budget also covers the procurement of indigenous Albatross II and Chiang-Kong missile systems, as well as NT$7.3 billion for urgent munitions stockpiles. Additionally, NT$64.5 billion is earmarked for two classified projects, which are believed to fund Taiwan-U.S. co-development programs. The supplementary budget was approved following the passage of an act by the opposition-controlled parliament that allocates NT$40 billion annually for six years to the unmanned vehicle industry. This move follows pressure from Washington and the need to bolster Taiwan's 'hedgehog' defence strategy.

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