Taiwan Proposes Special Arms Budget of Up to NT$900 Billion

The Ministry of National Defense (MND) in Taiwan is set to propose a special arms budget ranging from NT$600 billion to NT$900 billion (approximately US$19.98 billion to US$29.98 billion). This budget aims to enhance Taiwan’s defense capabilities by acquiring advanced command and control systems and air defense missiles from the United States, according to a senior official who spoke on condition of anonymity.

Negotiations are currently ongoing between Taiwan and the US regarding the specific types and quantities of arms to be included in this special budget. The MND plans to submit the proposal to the legislature when its new session opens in March 2024, indicating that the budget must be finalized by the end of this month.

Key Components of the Proposed Budget

The proposed budget is anticipated to include significant air defense systems, such as the PAC-3 Patriot missiles and the National Advanced Surface-to-Air Missile Systems (NASAMS). These systems are crucial for enhancing Taiwan’s air defense capabilities in response to regional security challenges.

Additionally, Taiwan intends to acquire an unspecified command and control capability, with previous reports suggesting the potential inclusion of the Link-22 secure data link system. This technology would improve Taiwan’s ability to coordinate its defense operations more effectively.

The budget will also cover the procurement of air and sea drones from the US, as well as investments in developing domestic production capacities for these systems. One noteworthy aspect includes a potential NT$14 billion plan for the 202nd Arsenal to establish new automated production lines for 155mm artillery shells through collaboration with the US.

Strategic Considerations and Global Context

The US has expressed interest in establishing 155mm shell production lines in Taiwan, particularly in light of the ongoing conflict between Ukraine and Russia, which highlighted the critical need for increased production of this type of ammunition. The reliance on 155mm howitzers as the backbone of artillery forces among NATO and many Western-aligned nations, including Taiwan, underscores the strategic importance of this initiative.

The MND is also contemplating using the special budget to finance certain procurement programs that were originally part of the general budget. This approach reflects a broader trend of securing defense funding outside the ministry’s regular budget. The MND has previously utilized special budgets to fund various initiatives, including the air and sea combat power improvement plan, fighter jet procurement plan, and the national resilience plan.

Overall, this proposed special arms budget underscores Taiwan’s commitment to strengthening its defense capabilities amid evolving regional dynamics and security challenges. The upcoming legislative session will be crucial in determining the approval and implementation of these significant defense investments.