Taiwan's leader says government to propose record defence spending for 2027

Taiwan's President Lai Ching-te announced on Monday (Aug 17) that the government plans to propose a record defense budget for 2027. This comes amid growing military pressure from China, which views Taiwan as part of its territory and has not ruled out using force to secure control. The total defense budget for next year, including the annual and special budgets, will surpass NT$1 trillion (US$35.2 billion) for the first time.

Lai stated that defense spending will account for more than 3% of the island's gross domestic product. Taiwan has been increasing its defense budget in recent years, acquiring smaller and more agile weaponry such as drones to enable asymmetric warfare against China. However, Lai's government is at odds with Taiwan's opposition parties, which hold a majority in parliament and have a maximum spending goal of 5% of GDP by 2030.

The opposition party, Kuomintang, passed a US$25 billion special defense budget in May, reducing the amount requested by Lai's Democratic Progressive Party by about a third. Lawmakers are currently reviewing rival proposals for drone investment worth billions of dollars, which could be passed as early as this week. Parliament is expected to receive the 2027 budget for review by the end of August after a record delay.