Taiwan’s cabinet will propose a 16% increase in defence spending for 2027, taking the annual budget above T$1 trillion (US$31 billion) for the first time, according to official media reports.
The proposed budget of more than T$1.1 trillion is expected to be unveiled on August 20 and would remain above 3% of gross domestic product. It is set to include funding for the coast guard, veterans and special projects, although the final figures have yet to be confirmed.
The planned increase comes as Taiwan steps up efforts to strengthen its military capabilities amid continued pressure from China, which claims the self-ruled island as part of its territory. Taipei rejects Beijing’s claim.
At the same time, Washington has urged Taiwan to take on a greater share of its defence burden. President Lai Ching-te has backed higher military spending as part of efforts to reinforce Taiwan’s defence capabilities.
According to Reuters, military modernisation remains a key policy priority for Taipei, including the development of domestically built submarines, as Chinese military activity around the island continues.
China’s military conducts almost daily operations around Taiwan and has held periodic military exercises in the region. Beijing is also expanding its military capabilities, including aircraft carriers, stealth fighter jets and missiles.
Against that backdrop, Taiwan is currently conducting its annual Han Kuang military exercises. Lai, speaking during drills in Taoyuan on Sunday, said the exercises were intended to build operational experience and strengthen military confidence.
The proposed increase would also widen the gap with Taiwan’s current defence spending, while China raised its own defence budget by 7% this year to 1.91 trillion yuan (US$283.08 billion).
