Taiwanese President Lai Ching-te announced on Monday that the proposed defense budget for 2027 will increase by 16% to a record 1.1225 trillion Taiwan dollars (about $35.2 billion). The proposal marks the first time Taiwan's defense spending will surpass the one-trillion-dollar threshold, keeping the total allocation above 3% of the island's gross domestic product.
Lai characterized the ramped-up spending as a necessary investment in peace, highlighting Taipei's determination to reinforce its self-defense capabilities. The government is scheduled to officially present the comprehensive budget plan on Thursday before it undergoes parliamentary scrutiny.
The spending surge comes amid heightened political and military pressure from China, which views the self-governed island as its territory. Lai has designated defense enhancement as one of his administration's top five priorities for 2027.