Taipei: Taiwan has proposed a record defence budget of NT$1.1225 trillion for 2027 as the island moves to strengthen its military in response to growing pressure from China. The proposed spending is about US$31.4 billion and represents an increase of around 18 percent from the previous year. It would also push Taiwan's defence spending above 3 percent of its economic output.
The decision marks a major step in Taiwan's efforts to improve its ability to defend itself. The government says the increased spending is necessary to protect the island, maintain peace and strengthen its ability to respond to a possible military crisis across the Taiwan Strait.
President Lai Ching te has described the higher defence spending as an investment in peace. His government believes that a stronger military could help prevent conflict by making any possible attack much more difficult and costly.
China considers Taiwan part of its territory and has not ruled out the use of force to bring the island under its control. Taiwan's government rejects Beijing's claim and says its future should be decided by its own people. In recent years, Chinese military aircraft, naval vessels and coast guard ships have operated frequently around Taiwan, creating a security environment that Taipei considers increasingly serious.
The new defence budget is expected to support a wide range of military programmes. Taiwan is placing particular attention on missiles, drones, air defence, surveillance systems and other weapons that could help its forces continue operating during a major conflict.
Drones are becoming an especially important part of Taiwan's defence plans. The island is looking to expand its domestic production of unmanned aircraft and other unmanned systems. These could be used for surveillance, reconnaissance, targeting and attacks. Taiwan is also developing unmanned systems that can operate around its coastline and help monitor movements at sea.
The increased focus on drones reflects lessons from recent wars, where relatively inexpensive unmanned systems have played an important role. Taiwan believes that large numbers of smaller systems could help compensate for its disadvantage in size compared with China's much larger military.
Taiwan is also strengthening its conventional military capabilities. The island is preparing to receive its first two of 66 newly built F 16V Block 70 fighter aircraft purchased from the United States. The aircraft are intended to improve Taiwan's air power and replace some older aircraft in its fleet. The wider purchase programme is worth billions of dollars and is part of a long term effort to modernise the air force.
The proposed defence spending also comes after Taiwan completed its annual Han Kuang military exercises. The drills simulated different situations, including attacks on important infrastructure and possible efforts by China to blockade the island. The exercises were designed to test how Taiwan's military and civilian authorities could respond during a serious emergency.
China has criticised Taiwan's military preparations and described the exercises as provocative. Beijing has repeatedly warned that moves toward what it considers greater independence for Taiwan could lead to a serious response.
Taiwan is also facing pressure from the United States to take greater responsibility for its own defence. Washington has encouraged partners to spend more on their militaries, and President Lai has welcomed the idea that Taiwan should invest more heavily in its own security.
However, approving the proposed budget may not be easy. Taiwan's parliament is controlled by opposition parties, while Lai's Democratic Progressive Party does not have a majority. Political disagreements have already caused lengthy delays in approving the country's budget.
Taiwan's 2026 government budget was approved only recently after months of political disputes. Although lawmakers made cuts to parts of the government's spending plans, they approved a major allocation for drone related defence programmes. This shows that there can be support across political parties for some defence investments, even when there are disagreements over the government's wider plans.
The new budget will therefore face close scrutiny in parliament. Opposition lawmakers are likely to examine the size of the spending increase, how the money will be used and whether the government can manage such a large defence programme efficiently.
For Taiwan, the challenge is not simply to spend more money. The government must ensure that additional funding produces real military capabilities. Weapons need to be delivered on time, ammunition stocks need to be maintained, military personnel need proper training and communications systems must remain operational during a crisis.
The proposed budget shows that Taiwan is preparing for a security environment that it believes could become more dangerous. The island is moving towards a defence strategy based on stronger air and missile protection, drones, mobile weapons, surveillance and systems designed to survive an initial attack.
The record spending plan is therefore more than a financial increase. It represents Taiwan's broader effort to strengthen deterrence and convince potential opponents that any military action against the island would face serious resistance.
The proposal will now enter the political process, where its final size and individual spending priorities will be debated. But the message from Taipei is already clear. Taiwan intends to devote more resources to its defence as Chinese military pressure continues, while seeking to maintain peace and stability across the Taiwan Strait.