SINGAPORE — Taiwan’s budget agency has announced a proposed 18 percent increase in its defense budget for 2027 as the self-governing island continues efforts to deter a potential invasion from China.
The Directorate General of Budget, Accounting and Statistics (DGBAS) of Taiwan’s cabinet released its budget statement for the coming fiscal year on Thursday, with 1.123 trillion Taiwan dollars (about $35.3 billion) set to go to defense.
This figure is the highest amount Taiwan and spent on defense and equates to 3.01 percent of the island’s projected Gross Domestic Product for the 2026 fiscal year, which runs from Jan. 1 to Dec. 31. Taiwan’s defense ministry could get $691.9 billion NT of the approved defense budget for its ongoing operations and upkeep while a further $218.2 billion NT will be allocated for a special budgets for the acquisition of weapons.
Earlier this week Taiwanese President Lai Ching-te said the expected jump in defense spending “demonstrates Taiwan’s determination to strengthen its self-defence capabilities.”
“Investing in defence is investing in peace; we will continue to build a more solid defence force to maintain peace and stability in the Taiwan Strait and the region,” Lai said, according to Reuters.
Still, the increase is unlikely to satisfy some US officials, who have long pushed for the island to spend more. US Under Secretary of Defense for Policy Elbridge Colby has previously said that Taiwan should spend 10 percent of its GDP on defense.
The approval of next year’s budget comes after Taiwan’s parliament passed a long-delayed NT$780 billion special defense budget from last year in May, albeit only after Taiwan’s opposition had succeeded in slashing the allocated amount from the NT1.25 trillion originally requested. The new budget proposal will also have to be approved by the opposition-controlled legislature, according to The Associated Press.