Taiwan proposes boosting 2027 defense spending 18% to a record high

Taiwan's government has proposed a significant 18% increase to defense spending in 2027, reaching a record high of NT$1.1225 trillion ($31.41 billion). This substantial boost in military funding marks the first time the island's budget surpasses the NT$1 trillion mark. The proposal, approved by the cabinet following a meeting, includes supplementary investments in drones and missiles, areas previously hindered by parliamentary approval.

President Lai Ching-te has enthusiastically embraced the U.S. pressure on Europe to increase defense spending, aiming to bolster Taiwan's military capabilities against China's growing assertiveness. Beijing, which claims Taiwan as its territory, has intensified military and political pressure over recent years. Taiwan faces a tough challenge from the opposition-dominated parliament, which only passed the 2027 budget late last week after months of delays.

While the opposition acknowledges the need for defense spending, they have expressed reluctance to approve excessive allocations. The budget also covers veterans' welfare and the Coast Guard, which supports the navy in maritime defense. Lai had previously announced the defense spending target earlier this week, amid China's regular military exercises in the waters and skies surrounding Taiwan.

China's military presence in Taiwan's vicinity and its new tactics have heightened tensions, with Taiwan's drills simulating scenarios such as breaking a Chinese maritime blockade. China has dismissed these drills as "wasteful charades" aimed at creating war panic.