The Ministry of National Defense is to propose a NT$600 billion to NT$900 billion (US$19.98 billion to US$29.98 billion) special budget to purchase command and control systems, as well as air defense missiles, from the US, a senior official said yesterday.
Taiwan is in negotiations with the US over the types and quantities of arms to be included in the proposed special budget, with the aim of submitting the proposal to the legislature when its new session begins next month, the official said on condition of anonymity.
This means the special budget must be ready by the end of this month, they said.
The proposed budget is expected to include PAC-3 Patriot missiles and National Advanced Surface-to-Air Missile Systems (NASAMS), both of which are key air defense platforms, they added.
Taiwan is seeking to acquire an unspecified command and control capability, which previous reports have suggested could be the Link-22 secure data link system, the source said.
The special budget would also cover the procurement of air and sea drones from the US, as well as investments in developing domestic production capacity for these systems, they said.
One element of the proposal could include a NT$14 billion plan for the 202nd Arsenal to establish new automated production lines for 155mm artillery shells in collaboration with the US, they said.
The US has expressed interest in setting up 155mm shell production lines in Taiwan, given the lessons learned from the Ukraine-Russia war, which demonstrated the need to significantly ramp up output of this type of ammunition, the official said.
NATO and most Western-aligned nations, including Taiwan, rely on 155mm howitzers as the backbone of their artillery forces.
The ministry is mulling using the special budget to fund some of the procurement programs that were under the general budget, they said.
The unnamed special budget is part of a continuing trend of securing defense funding outside of the ministry’s regular budget.
The ministry is already using special budgets to fund the air and sea combat power improvement plan, fighter jet procurement plan and the national resilience plan.
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