Taiwan to increase defence spending by 16% to exceed T$1 trillion

Taiwan President Lai Ching-te has announced that proposed defence spending for next year will increase by 16%, exceeding T$1 trillion ($31.40 billion) for the first time. Lai stated that this increased expenditure is an “investment in peace” intended to strengthen the nation’s self-defence capabilities and maintain stability in the Taiwan Strait.

The budget increase comes amid heightened military and political pressure from China, which claims Taiwan as its own territory. Taiwan’s government has prioritized military modernisation, including the development of domestic submarines, to counter regional threats. The move also aligns with calls from Washington for Taiwan to increase its own defence contributions.

By 2027, the overall defence budget is projected to reach T$1.1225 trillion, which would exceed 3% of the nation's gross domestic product. However, the administration faces scrutiny from an opposition-dominated parliament regarding fiscal oversight and budget approvals.