Taiwan proposes record US$35b defence budget for 2027 amid growing PLA pressure

Taiwan has unveiled a record NT$1.12 trillion (US$35 billion) defense budget for 2027, signaling a substantial increase in spending on weapons, ammunition, and military operations. This proposed budget, the first to surpass the NT$1 trillion mark, is NT$173 billion, or 18.2 percent, higher than the current year's allocation.

The significant rise in defense expenditure accounts for approximately 28.6 percent of the government's proposed NT$3.93 trillion total expenditure for the upcoming year. This means nearly NT$29 of every NT$100 allocated by the government will be directed towards defense and related security measures.

This heightened spending comes in response to mounting military pressure from China's People's Liberation Army and repeated encouragement from Washington for Taipei to bolster its own defense capabilities. Taiwanese leader William Lai Ching-te has committed to increasing overall defense spending to 5 percent of the gross domestic product by 2030, aiming to strengthen the island's deterrent posture. The proposed budget prioritizes military investment, which would see an increase of NT$97.5 billion, reaching NT$259.1 billion, forming the largest portion of the overall budget hike.