Taiwan plans 16% defence spending increase to exceed $31 billion in 2027

Sunday 09 August 2026 - 11:30

By: Sahili Aya

Taiwan plans 16% defence spending increase to exceed $31 billion in 2027

Taiwan is preparing to increase defence spending by 16% in 2027, with the proposed budget expected to surpass T$1 trillion ($31 billion) for the first time, according to the official Central News Agency.

The planned increase comes as Taipei continues to strengthen its military capabilities amid sustained pressure from China, which regards Taiwan as part of its territory. Taiwan rejects Beijing's sovereignty claims.

Cabinet set to review proposed defence budget

Taiwan's cabinet is expected to review the proposed 2027 defence allocation on August 20, according to the report.

Crossing the T$1 trillion threshold would represent a significant expansion of resources devoted to Taiwan's military at a time when the government is seeking to improve its ability to respond to potential security threats.

The planned increase also reflects the growing importance Taipei places on defence preparedness as military activity around the island becomes increasingly frequent.

China maintains military pressure around Taiwan

China has intensified military and political pressure on Taiwan in recent years, including frequent operations around the island.

Beijing considers Taiwan part of its territory and has not ruled out the use of force to achieve its objectives. Taipei maintains that the future of the island should be determined by its own people and has repeatedly rejected China's sovereignty claims.

The heightened tensions have made defence spending a central issue for Taiwan as it works to reinforce its armed forces and improve readiness.

Budget increase comes during annual military exercises

The announcement coincides with Taiwan's annual Han Kuang military exercises, which are designed to test the armed forces' ability to respond to a range of potential battlefield scenarios.

Military personnel were conducting battlefield repair drills in New Taipei City on Saturday, including exercises involving a CM-34 Clouded Leopard armoured vehicle.

The larger defence budget would provide additional resources as Taiwan continues modernising its forces and adapting its military planning to the changing security environment across the Taiwan Strait.