Taiwan proposes defense budget exceeding NT$1.1 trillion for 2027

Taiwan’s cabinet is set to propose a defense budget for 2027 that exceeds NT$1.1 trillion ($31 billion) for the first time. This represents a proposed 16% annual increase in spending, aimed at bolstering military capabilities and responding to escalating regional tensions.

The budget, which is expected to exceed 3% of Taiwan's gross domestic product, includes funding for the coast guard, veterans, and special projects. A key focus of the spending is military modernization, including the development of domestic submarines and the enhancement of technical capabilities such as sensor technology, communication, and cybersecurity resilience.

This increase follows pressure from the United States for Taiwan to increase its own defense spending and comes amid heightened military and political pressure from China. President Lai Ching-te has emphasized that peacetime preparation is essential for national stability and strength, noting that military exercises are vital for building confidence and experience.