Taiwan’s proposed Defense budget of US$40 billion sparked sharp criticism Wednesday from opposition lawmakers, who called the plan “astronomical” and lacking details. Consequently, the Defense budget now dominates political discussions as parties debate national security and fiscal responsibility.
President Lai Ching-te outlined the proposal in a recent op-ed, highlighting the growing threat from China. He emphasized that the additional funding is essential to modernize Taiwan’s military and strengthen national defense.
Opposition Kuomintang lawmakers also questioned whether the proposal was tied to a deal with U.S. President Donald Trump, allowing Lai to transit through the United States. KMT legislator Hsu Yu-chen argued that the “astronomical sum” would likely require debt financing. Moreover, she said the Democratic Progressive Party had provided little detail on spending priorities or allocation methods.
Similarly, Hsu Chiao-hsin, another KMT lawmaker, said her party does not oppose boosting defense spending given rising tensions across the Taiwan Strait. However, she warned that the US$40 billion proposal could force cuts to education, social welfare, and other domestic programs. She also noted that Washington has yet to deliver several previously ordered weapons systems.
The KMT caucus pledged to scrutinize the budget closely to ensure lawmakers protect taxpayer money. They emphasized that transparency and fiscal prudence must remain central concerns amid the proposed spending surge.
Meanwhile, Taiwan People’s Party Chairman Huang Kuo-chang expressed conditional support for a reasonable defense spending increase. He stressed the importance of conducting a practical review to safeguard taxpayer interests. In addition, he pointed out that the government’s fiscal 2026 defense budget already stands at NT$950 billion (US$30.2 billion) and questioned the timing of Lai’s new commitment.
During a news conference, President Lai defended the plan as necessary to respond to growing security challenges. He urged opposition parties to support Taiwan’s national defense regardless of political stance. He argued that maintaining strong security protects daily life and supports economic growth.
The Ministry of National Defense clarified that the supplementary US$40 billion will fund weapons procurement, personnel training, and infrastructure upgrades over eight years, from 2026 to 2033. Officials highlighted that these investments aim to strengthen long-term military readiness.
Analysts predict that the proposal will trigger intensive debate in the legislature. Lawmakers must weigh national security needs against fiscal pressures, potential debt financing, and social program impacts. Therefore, Taiwan’s Defense budget discussions will test political cooperation and public support for long-term security planning. Ultimately, lawmakers face a delicate balance between safeguarding the nation and maintaining fiscal stability.
