President Lai Ching-te said Monday that Taiwan will propose a record defence budget for 2027 exceeding T$1 trillion [1].
The spending surge signals Taiwan's intent to harden its military posture as it faces intensifying pressure from China. By crossing this financial threshold for the first time, the administration aims to deter potential aggression through increased capability.
The proposed budget represents a 16% increase over the previous year [3]. According to government figures, the total is approximately US$31.40 billion [2]. While some reports suggest a higher figure of US$35 billion, official estimates center on the US$31 billion mark [1].
Lai said the government is determined to strengthen its defences as an investment in peace. He said that the 2027 budget will exceed T$1 trillion, marking the first time the nation has crossed that threshold [1].
The announcement in Taipei comes as the island continues to modernize its hardware and strategic reserves. The full cabinet budget is scheduled to be unveiled this Thursday [4].
Lai said the increased spending is a necessary response to the security environment. The administration views the allocation not as a provocation, but as a means to ensure stability in the region [4].
“"We are determined to strengthen our defences as an investment in peace."”
This budget expansion reflects a strategic shift toward long-term military sustainability. By increasing spending by 16%, Taiwan is attempting to close the capability gap with the People's Liberation Army. The 'investment in peace' framing is designed to signal to the international community that Taipei seeks deterrence rather than escalation, while simultaneously preparing for a high-intensity conflict scenario.
