By The Straits Times | Created at 2026-08-20 04:56:37 | Updated at 2026-08-20 05:08:17
15 minutes ago
TAIPEI, Aug 20 - Taiwan's government on Thursday formally proposed an 18% rise in defence spending for next year, taking it above T$1 trillion ($31.41 billion) for the first time as Taipei continues to bolster its military in the face of China.
The budget details come as China, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past few years to assert its claims, which Taipei strongly rejects.
Taiwan also faces calls from Washington to spend more on its own defence, mirroring U.S. pressure on Europe, something President Lai Ching-te has enthusiastically embraced.
The government said in a statement following a cabinet meeting to approve the 2027 general budget that defence spending in 2027 would reach T$1.1225 trillion, exceeding 3% of gross domestic product.
Lai also faces a challenge from Taiwan's opposition-dominated parliament, which only passed this year's budget late last Friday after months of delays.
The two main opposition parties say they will not write blank cheques for the government, though have repeatedly stressed they support defence spending.
The budget includes funds for veterans and also the Coast Guard, which has an auxiliary role to the navy in protecting Taiwan's maritime areas.
Lai had already announced the defence spending number earlier this week.
Taiwan's government has made military modernisation a key policy platform and has repeatedly pledged to spend more on its defences, including developing made-in-Taiwan submarines, given the rising threat from China.
China's military operates almost daily in the waters and skies around Taiwan, and Beijing has also been honing new tactics, such as coastguard "law enforcement" patrols off Taiwan's east coast in the Pacific Ocean.
Taiwan finished its annual Han Kuang military drills last week, simulating a range of battle scenarios including how to break a potential Chinese maritime blockade.
China's Defence Ministry called the drills a "wasteful charade" that "stoked war panic". REUTERS
