TAIPEI (Taiwan News) — The central government budget for 2027 will exceed NT$3.6 trillion (US$111.3 billion) and there will be no new borrowing, President Lai Ching-te (賴清德) said Tuesday.
Lai said the budget will increase spending on technology, national defense, social welfare, education, and public infrastructure, per CNA. It will also support wage growth and broader tax cuts.
Lai said the country’s economy grew 8.76% last year and 14.55% in the first quarter of this year. He said central government spending has increased from NT$1.9 trillion in 2016 to more than NT$3.6 trillion planned for 2027, Liberty Times reported.
The budget has 10 major priorities, including technology investment and the government’s “Smart Nation 2.0” plan, Lai said. He added the government will also help small- and medium-sized businesses adopt digital and low-carbon technologies and strengthen national defense, per Economic Daily News.
Lai said other priorities include tax cuts, higher wages, social welfare, and healthcare. He said the government also plans to increase spending on education, culture, sports, flood control, and public infrastructure, per TVBS News.
Lai said Taiwan faces changes in global trade, geopolitical risks, and rapid advances in artificial intelligence, a declining birth rate, and an aging population. He said the government must address current needs while preparing for future competition.
CTEE reported that Lai said the Cabinet completed the 2027 draft on schedule even though the 2026 central government budget has yet to clear the legislature. He said the draft was prepared under the government’s regular budget process.
The lawmakers completed the first round of negotiations Tuesday on more than 1,700 proposals related to the 2026 budget. A second round is scheduled for Thursday, with parties still divided over several spending cuts, per Liberty Times.
