Taiwan’s Cabinet is preparing to propose a defense budget exceeding NT$1.1 trillion, roughly $34.1 billion, for fiscal year 2027. That would represent a 16% jump from the previous year and the first time the island’s annual military spending has crossed the NT$1 trillion mark.
The budget is expected to maintain defense spending above 3% of GDP, a level Taiwan first hit in 2026. The formal proposal is set to be unveiled on August 20.
The numbers in context
In 2026, total defense spending, which includes coast guard and veterans’ affairs, reached NT$949.5 billion. That figure represented 3.32% of GDP and a 22.9% year-over-year increase.
President Lai Ching-te has set an even more ambitious target: steadily raising defense spending toward 5% of GDP by 2030. For reference, the US spends roughly 3.4% of its GDP on defense.
