Taiwan’s 2027 defence spending to rise 16%, official media reports

Taiwan’s cabinet plans to propose a 16% increase in defence spending for 2027, according to the official Central News Agency. This would be the first time the annual budget surpasses T$1 trillion ($31 billion), reports the agency. China, which claims Taiwan as its own, has intensified military and political pressure on the island in recent years.

However, Taiwan is also receiving encouragement from the United States to bolster its own defence capabilities. President Lai Ching-te has wholeheartedly accepted this pressure to strengthen the island's military. The proposed budget includes funding for the coast guard, veterans, and special projects. Like this year, the budget will exceed 3% of Taiwan's gross domestic product, set to be unveiled on August 20.