Taiwan Proposes Record 18 Percent Defence Budget

Taiwan has proposed an 18 percent increase in defence spending for next year, pushing the total above one trillion Taiwan dollars for the first time. The cabinet approved the budget to bolster military capabilities amid rising pressure from China.

Soldiers participate in a defense mission for a critical harbor during the annual Han Kuang military exercises in Yilan, Northeastern Taiwan, Monday, Aug. 10, 2026. Chiang Ying-ying/Pool via REUTERS

Taiwan proposed boosting 2027 defence spending 18% to T$1.1225 trillion ($31.41 billion), surpassing 3% of GDP for the first time. The cabinet-approved budget underscores Taipei's military modernization efforts against rising regional pressure.

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