Taipei, Taiwan, 17 August (Brussles Morning Newspaper) President Lai Ching-te has announced that Taiwan defence spending will rise to a record NT$1.1225 trillion (£27bn) in 2027, arguing that strengthening the island’s military capabilities is an investment in peace as pressure from China continues.
The planned expenditure will mark the first time Taiwan’s annual defence-related budget has exceeded NT$1 trillion. According to figures announced by Lai, spending will also remain above 3% of gross domestic product, extending a significant expansion of resources committed to national security.
Record defence budget strengthens Taiwan’s military plans
Lai presented the increase as part of Taiwan’s effort to build credible deterrence rather than prepare for conflict. The government has been expanding military investment as China’s armed forces conduct increasingly frequent operations around the democratically governed island, which Beijing claims as its territory.
Taiwan’s Ministry of National Defense has already made asymmetric capabilities, defence resilience, reserve forces and responses to so-called grey-zone activity central priorities for military investment. Its 2026 defence expenditure, calculated according to NATO standards, reached NT$949.5 billion, or 3.32% of GDP.
The planned 2027 figure of NT$1.1225 trillion represents another substantial step upwards.
Lai describes military investment as protection for peace
Lai said the record expenditure should be regarded as an investment in Taiwan’s security and in maintaining peace and stability across the Taiwan Strait and wider region.
His position reflects a consistent theme in the government’s security policy. Earlier this year, Lai said Taiwan intended to pursue “peace through strength”, with defence expenditure expected to reach 5% of GDP by 2030.
The president has also previously warned that China’s military exercises around Taiwan are becoming more frequent and intense. His administration argues that stronger deterrence can reduce the risk of Beijing attempting to change the status quo through force or coercion.
China pressure drives Taiwan defence spending
The budget announcement comes against the backdrop of continued Chinese military activity near Taiwan. Beijing has not renounced the use of force to bring the island under its control, while Taipei rejects China’s sovereignty claims.
Taiwan has consequently sought to modernise its armed forces while developing more weapons domestically and strengthening asymmetric capabilities designed to make an attack significantly more difficult.
The government has also proposed an eight-year special defence programme with a ceiling of NT$1.25 trillion. The Ministry of National Defense says the programme, covering 2026 to 2033, is intended to strengthen defence resilience and acquire equipment required for operational needs.
Political scrutiny remains over military expenditure
The scale of Taiwan defence spending also carries significant domestic political consequences.
Lai’s Democratic Progressive Party does not control the Legislative Yuan, where opposition parties have challenged elements of the government’s military expenditure and delayed consideration of defence funding proposals. The administration has repeatedly urged lawmakers to approve additional resources, arguing that delays could affect readiness and procurement.
That means the debate is not simply about Taiwan’s relationship with China. It is also becoming an important test of how much political and financial support the government can secure for its long-term security strategy.
What happens next for Taiwan’s defence budget?
The proposed 2027 expenditure will move through Taiwan’s budgetary and legislative process, where lawmakers will scrutinise the government’s spending priorities.
The administration is expected to continue pressing its case that sustained military investment is necessary to strengthen deterrence and protect regional stability. At the same time, opposition scrutiny over the scale and allocation of defence resources is likely to remain an important part of the parliamentary debate.
For Lai, the central argument is clear: Taiwan intends to demonstrate that it is prepared to invest more heavily in its own defence while presenting that investment as a means of preventing, rather than provoking, conflict.
