Taiwan proposes boosting 2027 defence spending by 18%

Taiwan's government has proposed a 18% increase in defence spending for 2027, bringing it above T$1 trillion for the first time. The proposed budget of T$1.1225 trillion exceeds 3% of Taiwan's gross domestic product, setting a record. This move comes amid escalating military and political pressure from China, which views Taiwan as its own territory.

Taiwan also faces calls from the US to boost its defence spending, mirroring pressure on European countries. President Lai Ching-te has welcomed these demands. However, the opposition-dominated parliament may challenge the government's spending plans, having previously only passed the budget late last year after months of delays.

The budget includes funds for veterans and the Coast Guard, which assists the navy in protecting Taiwan's maritime areas. Lai had announced the defence spending figure earlier this week. The government has prioritized military modernisation and pledged to spend more on defences, including developing made-in-Taiwan submarines, to counter China's rising threat.

China regularly conducts military operations in Taiwan's surrounding waters and skies, while also refining new tactics such as coastguard law enforcement patrols off Taiwan's east coast. Taiwan conducted its annual Han Kuang military drills last week, simulating various battle scenarios, including responding to a potential Chinese maritime blockade. China's defence ministry dismissed the drills as a "wasteful charade" that "stoked war panic."