Taipei:The Cabinet's request for NT$607.6 billion (US$18.51 billion), which includes significant funding for unmanned weapons and a new surface-to-air missile system, has advanced to committee review. This progression follows Premier Cho Jung-tai's briefing to the Legislative Yuan on the plan, where he also addressed lawmakers' questions.
According to Focus Taiwan, the proposed spending plan is part of the 2026 general budget and would increase government expenditure for fiscal year 2026 by NT$47.55 billion above revenue. The report submitted to the Legislature in September indicates that, including NT$161 billion designated for debt repayment, the central government would need to issue NT$208.5 billion in national debt in 2026.
The budget includes NT$145.7 billion for defense spending, which was previously rejected by opposition lawmakers. This allocation is intended for the procurement of unmanned systems and a new surface-to-air defense system. Of this, NT$55.9 billion is set aside for three types of unmanned systems coastal attack drones, coastal reconnaissance drones, and small one-way unmanned surface vessels.
Additionally, NT$13 billion is allocated for a package that includes seven items, featuring a "midcourse anti-ballistic missile system" called the Chiang-Kong missile, developed by the National Chung-Shan Institute of Science and Technology. The budget also includes NT$64.5 billion in classified funding for two projects, potentially involving Taiwan-U.S. co-development programs.
State-run oil supplier CPC Corp., Taiwan, is allocated NT$233.8 billion from the supplementary budget, the largest share, to support its operations amid deficits since 2020, partly due to government policies on stabilizing petroleum and natural gas prices.
An additional NT$11.1 billion is earmarked for planned allowance increases for military personnel, civil servants in managerial roles, coast guard personnel on special duties, aides to city and county councilors, and village and ward chiefs.
