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

Taiwan's President Lai Ching-te announced on Monday that his government plans to propose a record defence spending for 2027, responding to growing military pressure from China. Beijing claims sovereignty over Taiwan, inhabited by 23 million people, and has threatened to use force to annex the island. The announcement comes amid worldwide defense spending increases as countries grapple with escalating conflicts and assess US commitment to the Asia-Pacific region.

Lai stated that the island's defense budget, including annual and special allocations, will surpass NT$1 trillion (US$35.2 billion) for the first time, constituting over three percent of Taiwan's GDP. This significant increase underlines Taiwan's commitment to bolstering its defense capabilities. According to Lai, "Investing in national defence is an investment in peace," as the country continues to develop more agile weaponry, including drones, to engage in asymmetric warfare against potential adversaries.

The Democratic Progressive Party (DPP) government has aimed to elevate defense spending to five percent of GDP by 2030, following increased pressure from the United States to augment its security commitments. However, Taiwan's opposition parties, which hold a majority in parliament, have divergent views on defense spending, leading to disagreements over the allocation.

The main opposition Kuomintang and Taiwan People's Party, along with several lawmakers, recently approved a $25 billion special defense budget in May, reducing the government's initial request by a third. This funding primarily targeted domestic drone procurement and other defense enhancements. Lawmakers are now deliberating on rival drone investment proposals, potentially to be voted on this week, and the 2026 annual budget was initially delayed but ultimately approved by parliament after months of deliberation.