The government is targeting an 18.2 per cent increase in spending, with much of the extra money needed to pay for US weapons
3-MIN READ3-MIN1 ListenLawrence Chungin TaipeiPublished: 9:00pm, 20 Aug 2026Updated: 9:03pm, 20 Aug 2026Taiwan has unveiled a record NT$1.12 trillion (US$35 billion) defence budget for 2027, with sharp increases in spending on weapons, ammunition and military operations amid growing pressure from Beijing.The proposed spending – the first to cross the NT$1 trillion threshold – is NT$173 billion, or 18.2 per cent, higher than this year’s allocation, according to the government budget approved by the cabinet on Thursday.
It accounts for about 28.6 per cent of the government’s proposed NT$3.93 trillion expenditure next year, meaning nearly NT$29 of every NT$100 would go towards defence and related security spending.
Taiwanese leader William Lai Ching-te has pledged to raise overall defence spending to 5 per cent of gross domestic product by 2030 to strengthen the island’s deterrence.
Under the proposed budget, military investment would rise by NT$97.5 billion to NT$259.1 billion, accounting for the biggest part of the increase.
