Taiwan will raise its total defence spending for 2027 to NT$1.1225 trillion, marking the first time the country’s military budget has crossed the trillion-dollar threshold. The figure, equivalent to roughly $30.41 billion, will also push defence spending above 3% of GDP for the first time.
President Lai Ching-te said the 2027 defence budget — combining both the annual and special budgets — will reach NT$1.1225 trillion. Lai said the increase reflects Taiwan’s commitment to strengthening its self-defence capabilities.
“Investing in national defence is investing in peace,” Lai said, adding that Taiwan will continue building a stronger defence force to preserve peace and stability in the Taiwan Strait and the wider region.
US Pressure and the 5% Target
Taiwan’s government, under pressure from Washington, has pledged to raise defence spending to 5% of GDP by 2030.
Governments around the world are raising defence spending amid intensifying conflicts and growing uncertainty over the extent of the United States’ commitment to the Asia-Pacific region. China claims the island of 23 million people as part of its own territory and has continued to threaten the use of force to bring it under Beijing’s control.
2026 Budget Approved After Record Eight-Month Delay
Taiwan’s parliament approved the 2026 general government budget on Friday, roughly eight months behind schedule — the longest delay in the country’s history for a budget approval.
According to the government, the 2026 general budget will total just over NT$3 trillion, an increase of NT$110 billion, or 3.8%, compared with 2025. Lawmakers agreed on Friday to cut the 2026 budget by approximately 1.6%.
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Source: C4Defence– AFP
