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Taiwan unveils record US$35b defense budget for 2027 as PLA pressure grows

Taiwan’s proposed 2027 spending is NT$173 billion, or 18.2 percent, higher than its current year allocation, and military investment would rise to NT$259.1 billion.

Reported · Written up by our desk · Trade & Tariffs

Taiwan has unveiled a record NT$1.12 trillion (US$35 billion) defense budget for 2027, citing sharper spending needs for weapons, ammunition, and military operations amid growing pressure from Beijing, according to SCMP Economy.

The planned increase is NT$173 billion, or 18.2 percent, above this year’s allocation, with the package set to exceed the NT$1 trillion threshold for the first time. SCMP Economy reports the defense and related security budget would account for about 28.6 percent of the government’s proposed NT$3.93 trillion expenditures next year.

Taiwan’s proposal, approved by the cabinet on Thursday, would put nearly NT$29 of every NT$100 toward defense and security spending. Under the budget plan, military investment would rise by NT$97.5 billion to NT$259.1 billion, the biggest driver of the increase, SCMP Economy reports.

The Taiwanese leader William Lai Ching-te has pledged to raise overall defense spending to 5.0 percent of gross domestic product by 2030 to strengthen the island’s deterrence, SCMP Economy adds.

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