Proposed Defense Budget Increase
Taiwan’s government recently proposed an 18 percent rise in defense spending for next year. Consequently, this budget exceeds T$1 trillion for the very first time. Taipei actively bolsters its military to successfully ward off China. Specifically, the detailed budget plans include supplementary spending for new drones and advanced missiles. Previously, the government was unable to get parliamentary approval for these essential items. Furthermore, President Lai Ching-te enthusiastically embraced calls from Washington to spend significantly more on national defense. Ultimately, the total defense spending in 2027 would exceed 3 percent of the gross domestic product.
Political Challenges and Approvals
President Lai currently faces a major challenge from Taiwan’s opposition-dominated parliament. In fact, lawmakers only passed this year’s budget after months of severe delays. Meanwhile, the two main opposition parties repeatedly stressed they support defense spending. However, they absolutely refuse to write blank checks for the government. Previously in May, parliament approved extra defense spending of only around two-thirds of the requested amount. They specifically excluded money for domestic programs like drones. Additionally, the new budget includes critical funds for veterans and the Coast Guard.
Military Modernization and Regional Threats
Taiwan’s government explicitly made military modernization a key policy platform. Officials repeatedly pledged to develop made-in-Taiwan submarines given the rising threat from China. Currently, China’s military operates almost daily in the waters and skies surrounding Taiwan. Moreover, Beijing actively hones new tactics, including coastguard law enforcement patrols off the eastern coast. Meanwhile, Taiwan recently finished its annual Han Kuang military drills. These exercises successfully simulated breaking a potential Chinese maritime blockade. In response, China’s Defense Ministry quickly called the drills a wasteful charade.
Reference
Reuters. (2026, agosto 20). Taiwan proposes boosting 2027 defence spending 18% to a record high. https://www.reuters.com/world/asia-pacific/taiwan-proposes-boosting-2027-defence-spending-18-record-high-2026-08-20/