President Lai Ching-te said Monday that Taiwan will propose a record defense budget for 2027 to strengthen the island's self-defense capabilities.
The move signals a significant escalation in Taiwan's military preparation as it faces increasing pressure from China. By increasing spending to historic levels, the government aims to deter potential aggression through enhanced readiness.
Lai said the government will propose a 16% [2] annual rise in defense spending for 2027. This increase would result in a budget that exceeds T$1 trillion [2] for the first time. The total spending is expected to be just over US$35 billion [1].
During the announcement in Taipei, Lai said the military budget proposal is an investment in peace. He said the funding plan demonstrates Taiwan's determination to strengthen its self-defense.
"Taiwan is determined to strengthen its defences and plans record defence spending next year," Lai said.
The proposed budget comes as Taiwan continues to modernize its military infrastructure and procurement. The administration has framed the spending not as a provocation, but as a necessary step to ensure stability in the region.
Lai said the funding plan demonstrates Taiwan's determination to strengthen its self-defense. The government intends for the 2027 budget to provide the resources necessary to maintain a credible deterrent against external threats, a strategy the president linked directly to the preservation of peace.
“The government will propose a 16% annual rise in defence spending for 2027.”
The proposal to exceed T$1 trillion in defense spending marks a pivotal shift in Taiwan's fiscal priorities. By crossing this psychological and financial threshold, Taipei is signaling to both Beijing and its international partners, particularly the U.S., that it is committed to a policy of asymmetric deterrence. This budget increase suggests that Taiwan is accelerating its military modernization to counter China's growing capabilities, effectively betting that higher military costs will reduce the likelihood of a conflict.
