Taiwan proposes record $31.4 billion defense budget for 2027

Taiwan has proposed a record defense budget for 2027, totaling approximately NT$1.1225 trillion (about $31.4 billion). This represents a significant increase of roughly 16 to 18 percent compared to previous levels, pushing annual defense expenditure above 3 percent of the nation's GDP for the first time.

President Lai Ching-te described the increased funding as an investment in peace intended to strengthen Taiwan’s ability to maintain stability across the Taiwan Strait. The budget focuses on military modernization and asymmetric warfare capabilities, including air and missile defense, long-range precision fires, unmanned systems, resilient command networks, and larger munitions stocks. There is also a focus on supporting the development of domestic submarines and funding for the coast guard and veterans.

The budgetary shift comes in response to sustained military and political pressure from China, which maintains claims over the island. Taipei aims to develop capabilities that allow military units to remain operational following potential missile strikes, cyberattacks, or damage to command infrastructure, making any military operation by Beijing more costly and difficult to execute.