Taipei, Taiwan, 17 August 2026 – Taiwan plans to raise defence spending above NT$1 trillion for the first time in 2027, with President Lai Ching-te framing the record allocation as an investment in peace and resilience amid sustained military and political pressure from China.
The proposed defence budget totals NT$1.1225 trillion, equivalent to more than 3% of gross domestic product. The cabinet is expected to release the detailed budget breakdown on Thursday, allowing lawmakers and investors to assess how the funding will be divided among personnel, equipment, domestic programmes and operational readiness.
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