Taipei: The Cabinet approved a supplementary budget request of NT$607.6 billion (US$19.12 billion) on Thursday, which includes NT$145.7 billion previously rejected by opposition lawmakers. This budget aims to procure drones and a new surface-to-air defense system.
According to Focus Taiwan, NT$55.9 billion of the supplementary defense budget is allocated to fund three types of uncrewed systems requested by the Ministry of National Defense (MND) - coastal attack drones, coastal reconnaissance drones, and small one-way unmanned surface vessels (USVs). The government plans to acquire over 40,000 coastal attack drones, 600 coastal reconnaissance drones, and 100 small one-way USVs by 2027.
The procurement plan follows the recent passage of the Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry by the Legislature, where the opposition Kuomintang (KMT) and Taiwan People's Party (TPP) hold a majority. This Act allocates NT$40 billion annually for six years for these unmanned systems, subject to Legislative Yuan's spending reviews.
Lt. Gen. Huang Wen-chi, head of the MND's Department of Strategic Planning, clarified that the supplementary defense budget proposal was in response to opposition parties cutting NT$470 billion from the Cabinet's NT$1.25 trillion special defense budget in May. Huang emphasized the budget reflects the military's schedule for force buildup and aims to initiate procurement of coastal drones this year. The USVs are expected to be received in 2027.
The budget also encompasses the procurement of indigenous Albatross II intelligence, surveillance, and reconnaissance (ISR) drones and Chiang-Kong mid-altitude anti-tactical ballistic missile systems, developed by the National Chung-Shan Institute of Science and Technology (NCSIST). However, specific funding details for these systems were not disclosed.
Additionally, NT$7.3 billion is earmarked for "urgent munitions stockpiles," and NT$900 million is allocated for the Taiwan Tactical Network to enhance the situational awareness of frontline troops. The budget also includes NT$64.5 billion for two classified projects, believed to be Taiwan-U.S. co-development programs.
Regarding the opposition-backed procurement act, government spokesperson Michelle Lee stated that Premier Cho Jung-tai will review its provisions and feasibility before deciding whether to countersign it, a prerequisite for President Lai Ching-te's promulgation. Cho has previously declined to endorse opposition-backed laws affecting central government finances.
Meanwhile, the government-run oil supplier CPC Corp, Taiwan, will receive NT$233.8 billion, the largest share of the supplementary budget, to support its operations. The company has faced deficits since 2020 due to government-implemented petroleum and natural gas price smoothing policies.