The MND shall, in accordance with an overall military strategy and long-term defense planning of military policies, discreetly formulate the defense budget to meet the force restructuring objectives and military administration plans.

The scale of the national defense force shall be determined in accordance with national security requirements, and may be fulfilled according to related conscription laws. In order to maintain a robust reserve force, reservists shall be called upon in peacetime, and receive necessary training by law.

Government agencies under the Executive Yuan shall follow national defense policies to consolidate efforts of the private sector to develop defense technology industries. Acquisition of weapon equipment shall firstly consider those built domestically. When it is necessary to pursue outsourcing channels, the acquisition activities shall realize technology transfer policy so as to establish an autonomous national defense infrastructure.
The MND may cooperate or mutually entrust with domestic or foreign, and public or private corporate bodies to implement R&D, production, maintenance and selling of defense technological products.
In order to develop defense technology industries and their relevant corporate bodies, the MND may entrust the private sector with the management of the MND's subordinate R&D, production and maintenance infrastructures and their relevant facilities.
Above-mentioned two conditions will be stipulated by law.

In line with national security requirements, the Executive Yuan may authorize the establishment of emergent or secret defense infrastructures or facilities, and governmental agencies at all levels shall cooperate with such a decision. If the above-mentioned infrastructures or facilities affect citizen's livelihood, the Legislative Yuan may, through its resolutions, request the Executive Yuan direct the MND to undertake relevant improvements or alternations. Any infringement to citizen's rights shall be compensated by law.