- Taiwan will propose a record defence budget of NT$1.1225 trillion ($35.2 billion) for 2027, as President Lai Ching-te seeks to strengthen the island's military amid growing tensions with China.
- This substantial increase in budget allocation is seen as a step towards enhancing deterrence capabilities amidst ongoing tensions with China, which views Taiwan as a breakaway province.
- The total defence budget, including the regular and special allocations, is expected to reach NT$1.1225 trillion ($35.2 billion), Lai said in a statement issued by the Presidential Office.
- Lai emphasized that investing in national defence is an investment in peace, stating that Taiwan would continue building a stronger military to safeguard peace and stability in the Taiwan Strait and the wider region.
- The defense budget has surpassed T$1 trillion, marking over 3% of Taiwan's GDP, reflecting a strategic focus on maintaining a defensive posture rather than escalating towards offensive measures.
- This development comes amid a period of persistent gray-zone standoff characterized by regular People’s Liberation Army (PLA) activities around Taiwan.
- Lai’s government has pledged to raise the figure to 5% of GDP by 2030.
Taiwan's President Lai Ching-te has announced a record defense budget of NT$1.1225 trillion ($35.2 billion) for 2027, marking a significant increase aimed at enhancing the island's military capabilities amid escalating tensions with China.13
This budget surpasses T$1 trillion, representing over 3% of Taiwan's GDP, and reflects a strategic focus on maintaining a defensive posture rather than pursuing offensive measures.5
Lai emphasized, “Investing in national defence is an investment in peace,” highlighting the government's commitment to strengthening military forces to ensure stability in the Taiwan Strait and the broader region.4
The proposed budget comes during a period of persistent gray-zone standoff, characterized by regular activities from the People’s Liberation Army (PLA) around Taiwan.6
Furthermore, Lai's administration has pledged to increase defense spending to 5% of GDP by 2030, indicating a long-term commitment to bolstering Taiwan's defense capabilities in the face of ongoing threats from China, which views Taiwan as a breakaway province.
“The defense budget will surpass T$1 trillion, representing over 3% of Taiwan's GDP, reflecting a strategic focus on maintaining a defensive posture. President Lai stated, 'Investing in national defence is an investment in peace,' as Taiwan aims to strengthen its military amid ongoing tensions with China.”
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