Taiwan’s leader says government to propose record defence spending for 2027

Taiwan's government will propose a record defense budget for 2027, President Lai Ching-te announced Monday, signaling the island's determination to bolster its self-defense capabilities amid escalating military pressure from China. The proposed budget, which includes both annual and special allocations, is set to surpass NT$1 trillion ($35.2 billion) for the first time, accounting for over three percent of the island's GDP.

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Next year’s total defence budget, including both the annual budget and the special budget, will exceed NT$1 trillion for the first time, reaching NT$1.1225 trillion ($35.2 billion).

"Investing in national defence is an investment in peace," Lai stated, emphasizing the commitment to building a more robust defense force to maintain stability in the Taiwan Strait and the wider region. This announcement follows years of increased defense spending by Taiwan, which has been acquiring advanced weaponry, including drones, to prepare for asymmetric warfare against mainland China.

The proposed budget increase comes at a time when governments globally are boosting defense spending due to intensifying conflicts and concerns about U.S. commitment to the Asia-Pacific. Taiwan's government aims to increase defense spending to five percent of GDP by 2030, a goal that has faced opposition from parties holding a majority in parliament.

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Investing in national defence is an investment in peace.

Legislative hurdles remain, as opposition parties previously reduced a special defense budget by a third. Lawmakers are currently considering rival proposals for drone investments, with a vote potentially happening this week. Parliament recently approved the government's 2026 annual budget after a record delay, highlighting ongoing political friction over defense expenditures.

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We will continue to build a more robust defence force to maintain peace and stability in the Taiwan Strait and the region.