TAIPEI (Taiwan News) — Taiwan has proposed a record NT$1.12 trillion (US$35.15 billion) defense budget for 2027, an 18% increase from this year's level that would take military spending above the symbolic NT$1 trillion mark for the first time, the Wall Street Journal reported Thursday.
The proposed defense budget is part of an NT$3.93 trillion central government budget approved by the Cabinet on Thursday. The defense figure includes funding for the Coast Guard, military pensions, and special budgets for arms purchases.
The increase comes as Taiwan faces growing military pressure from China and calls from Washington for Taipei to take greater responsibility for its own defense. President Lai Ching-te (賴清德) has pledged to keep defense spending above 3% of GDP and raise it to 5% by 2030, describing higher military spending as an investment in peace, per Reuters.
The budget also signals Taiwan's intent to expand its military capabilities, including spending on drones, missiles, and other weapons and equipment, per the Wall Street Journal. The government has said it is seeking to strengthen its ability to deter a potential Chinese attack.
The proposal could face scrutiny in Taiwan's opposition-controlled Legislative Yuan, which has delayed passage of previous budgets and cut some government spending requests, per Reuters. Lawmakers only approved the 2026 central government budget on Aug. 14, months after it was originally submitted.
The plan also comes as Taiwan seeks to deepen its security relationship with the US, its main source of military equipment, although Washington's approval is required for major arms sales. President Donald Trump has previously described a pending NT$445.98 billion arms package for Taiwan as a potential negotiating tool with China, adding uncertainty over the timing of future weapons purchases.
