Taiwan's Bold Defense Move: $40 Billion Arms Budget Unveiled

Taiwan's President Lai Ching-te proposes a $40 billion budget for arms purchases, focusing on air defense enhancements amid US pressure. Allocated over eight years starting 2026, the budget aims to increase defense spending to 5% of GDP, with a focus on precision-strike missiles and joint US collaborations.

In a significant move to bolster Taiwan's defense capabilities, President Lai Ching-te has announced a striking $40 billion special budget aimed at enhancing the island nation's military prowess. The budget will target arms purchases to construct the Taiwan Dome, an advanced air defense system, amid growing pressure from the US to ramp up defense spending.

Spanning over eight years, from 2026 to 2033, the budget comes in alignment with Lai's previous commitment to elevate defense spending to 5% of Taiwan's GDP. Currently, the island has increased its defense allocation to 3.3% of GDP for 2026, equating to TWD 949.5 billion (USD 31.18 billion).

The special budget will emphasize acquisition of precision-strike missiles and will facilitate joint development and procurement initiatives with the United States, as outlined by Wellington Koo, Taiwan's minister of national defense. These efforts underline Taiwan's strategic endeavor to enhance its military readiness in a rapidly evolving geopolitical landscape.

(With inputs from agencies.)