Taiwan cabinet approves NT$607.6 billion extra budget, with defense taking 24%

Sep 02, 2026

Taiwan is pushing through a large one-off spending package that leans heavily on weapons and drones, a sign the government sees both military risk and household cost pressure as urgent.

  • The extra budget totals about NT$608 billion, with the defense ministry taking the biggest slice at roughly a quarter.
  • Drones are the headline item: sea-watching surveillance drones and related unmanned systems get about NT$56 billion, plus anti-missile defense projects.
  • The largest single line is not defense — NT$233 billion goes to recapitalizing state oil company CPC Taiwan.
  • Nearly NT$190 billion is set aside to cushion people from the fallout of the Middle East conflict, mainly through the economy, transport, and farm ministries.
  • Smaller amounts cover higher pensions and welfare payments, pay raises for public workers and teachers, and rebuilding after the Hualien barrier-lake disaster.

Outlook: The package still needs to clear the legislature, and a separate unmanned-vehicle bill now sitting with the cabinet will test how far the government backs the drone buildout.

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