Taiwan's government has proposed a defense budget exceeding NT$1 trillion for the next fiscal year to fund major weapons modernization [1].
The spending surge comes as Taipei faces increasing military pressure and intimidation from mainland China. The investment aims to replace aging weapon systems, and expand force capabilities to deter potential aggression.
The projected defense budget for fiscal year 2026-2027 is NT$1.1 trillion [1]. This marks the first time the annual defense allocation has surpassed the NT$1 trillion threshold [1]. The proposal was approved by the Legislative Yuan, Taiwan's parliament [1].
President Lai Ching-te said the government will strive to strengthen defense capabilities and provide maximum support.
Beyond the annual budget, the Legislative Yuan approved a special weapons-procurement budget [2]. Reports on the size of this special fund vary, with some sources citing NT$7.8 billion [3], and others reporting a figure of NT$7.8 trillion [2].
The budget increase coincides with current military activities in the region. Drills are running for 10 days and are scheduled to continue until Aug. 14 [1].
While the government pushes for expansion, the plan has faced internal friction. Some opposition members proposed cuts to the special defense budget of approximately 40%, suggesting a lower total expenditure than the government's NT$1.1 trillion target [1].
“The next-year defence budget is NT$1.1 trillion, the first time to pass the NT$1 trillion mark.”
The crossing of the NT$1 trillion threshold signals a structural shift in Taiwan's fiscal priorities, moving toward a permanent state of high-readiness. By prioritizing the modernization of aging systems, Taipei is attempting to offset the quantitative military advantage of mainland China through qualitative technological upgrades.
