Taiwan proposes USD35.1 bln defense budget for 2027, up 4.4%

Published Aug 18, 04:47 PM UTC

Taiwan's government, led by President Lai Ching-te, has proposed a 2027 defense budget of TWD1.1225 trillion (USD35.1 billion), a 4.4% increase over 2026 spending. The budget combines regular and special allocations, exceeding 3% of GDP. The increase reflects Taiwan's commitment to strengthening self-defense amid growing Chinese pressure, with emphasis on asymmetric warfare, distributed operations, and resilience. The proposal follows the Legislative Yuan's approval of TWD780 billion in special-budget funding for US military equipment (2026-2033) and TWD8.3 billion for a six-year unmanned systems development program. The budget was announced shortly after Exercise 'Han Kuang 42'.