Taiwan has passed a special defence budget of 8.81 billion New Taiwan Dollars (approximately $281 million USD) through its parliament, aimed at shifting regional defence capabilities into an asymmetric dimension. The approval came just two days before the critical down payment deadline for HIMARS multiple rocket launch systems, thereby eliminating the risk of potential cancellation in Taiwan’s supply chain for key U.S.-origin weapons.
Taiwan’s Legislative Yuan officially approved the 8.81 billion NTD (about $281 million USD) special defence budget for 2026 in its third reading. Apart from a symbolic cut of 2 million NTD (about $64,000 USD) from operating expenses proposed by the government, the bill was largely passed.
Funding for Key Asymmetric Warfare Systems
The approved budget aims to strengthen asymmetric warfare capabilities, which are central to Taiwan’s defence doctrine. Significant funds have been allocated specifically for weapons systems that will bolster ground defence and enhance deterrence. According to information published by Taiwan News, the spending items within the budget include 3.92 billion NTD (about $125 million USD) for M109A7 self-propelled howitzers, and 2.79 billion NTD (about $89 million USD) for HIMARS multiple rocket launch systems. The defence package also includes 1.79 billion NTD (about $57 million USD) for anti-tank drone missiles. Additionally, resource allocation includes 162 million NTD (about $5.2 million USD) for Javelin anti-tank missiles and 130 million NTD (about $4.1 million USD) for TOW 2B anti-tank missiles.
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HIMARS Hurdle Cleared
The timing of the budget vote was critical, especially regarding the procurement of HIMARS rocket systems. The approval came just two days before the U.S.-imposed deadline for an 800 million NTD (about $25.5 million USD) down payment, preventing disruption to the procurement process. Had the funding not been approved, the process risked being canceled and having to restart from scratch.
Parliamentary Budget Compromise
This decision was reached within the complex political dynamics of Taiwan’s parliament. The opposition-majority Legislative Yuan had previously rejected the government’s eight-year defence budget of 1.25 trillion NTD (about $39.8 billion USD). Instead, an alternative budget plan with a ceiling of 780 billion NTD (about $24.8 billion USD), drafted by the Kuomintang (KMT) and the Taiwan People’s Party (TPP), was approved on May 8.
Under this new strategy set by the opposition, a ceiling budget of 300 billion NTD (about $9.5 billion USD) is envisioned for weapons purchases already approved by the United States. Furthermore, a ceiling budget of 480 billion NTD (about $15.3 billion USD) is foreseen for a second package to be announced in the future. The special package of 8.81 billion NTD (about $281 million USD) approved on Friday addresses urgent needs within this strategic framework.
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Source :C4Defence– Taiwan News
