Taiwan defense budget set to exceed TWD 1.1 trillion, hitting 3% of GDP target

The Executive Yuan is poised to approve a record defense allocation for next year, cementing the island's commitment to the 3% GDP spending benchmark amid ongoing legislative friction.

By Handelsavisen Newsroom · Automated 8 August 2026, 15:27 UTC · 1 min read

Taiwan’s defense spending is on track to surpass TWD 1.1 trillion for the upcoming fiscal year, a milestone that confirms the government’s adherence to its target of allocating 3% of gross domestic product to national security.

The Executive Yuan is scheduled to finalize the total budget on August 20, with the defense portion accounting for roughly a quarter of the entire TWD 3.6 trillion expenditure plan.

7% increase from the current year’s original plan, while expenditures are set to rise by 20%.

The proposed allocation breaks down into TWD 700 billion for the Ministry of National Defense, TWD 27 billion for the Coast Guard Administration, and over TWD 100 billion for the Veterans Affairs Council.

These core figures are supplemented by TWD 240 billion in special budgets and approximately TWD 55 billion from non-operating special funds.

The total budget revenue is projected to exceed TWD 3.8 trillion, marking a 35.7% increase from the current year’s original plan, while expenditures are set to rise by 20%.

The budget proposal comes amid continued political friction, with opposition parties from the Kuomintang and Taiwan People’s Party boycotting defense-related deliberations.