Taiwan plans to spend a record NT$1.1225 trillion (US$35.3 billion) on defence in 2027, marking roughly an 18% rise from the 2026 draft of NT$949.5 billion. The Cabinet will publish a detailed budget breakdown on Thursday, but parliamentary approval is uncertain because the opposition controls the Legislative Yuan. The increase is framed as strengthening deterrence amid rising pressure from China.
Taiwan to Break NT$1 Trillion Defence Ceiling in 2027 as Tensions With China Rise
FILE PHOTO - Then Taiwan vice president and Democratic Progressive Party presidential candidate William Lai holds a press conference. (is associated with: «Taiwan to break trillion-dollar barrier on defence for first time») Wiktor Dabkowski/ZUMA Press Wire/dpa
Taiwan will for the first time exceed NT$1 trillion in defence appropriations in 2027, President Lai Ching‑te announced during consultations on the government's draft budget. The combined total of regular and special defence budgets is set at NT$1.1225 trillion (US$35.3 billion).
Budget Details
The planned 2027 allocation represents roughly an 18% increase over the government's 2026 draft figure of NT$949.5 billion, calculated on the same basis. A detailed breakdown of the proposed spending is due when the Cabinet formally presents the draft budget on Thursday.
FILE PHOTO - A general view of the Legislative Yuan, Taiwan's parliament. (is associated with: «Taiwan to break trillion-dollar barrier on defence for first time») Johannes Neudecker/dpa
Presidential Statement
"Investment in defence is investment in peace," President Lai, who is also known as William Lai, said in a statement. He emphasized that Taiwan will continue strengthening its defence capabilities to safeguard peace and stability across the Taiwan Strait and the region.
Political Outlook
Parliamentary approval is not guaranteed. The opposition currently holds a majority in the unicameral Legislative Yuan and has signalled it will scrutinize the plans closely rather than approve a large increase without detailed review. Lawmakers only passed the 2026 state budget after months of delay, underscoring the likelihood of vigorous debate.
Regional Context
The announcement comes amid growing military and political pressure from China, which regards Taiwan as part of its territory and has not ruled out the use of force. Taiwan's government rejects Beijing's claim and frames higher defence spending as a deterrent to preserve stability.
FILE PHOTO: A general view of the Legislative Yuan, Taiwan's parliament. (Photo: Johannes Neudecker/dpa)
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