Taiwan’s Government will propose increasing defense spending by 16% to 1.1 trillion Taiwanese dollars (29.5 billion euros) in 2027, the state news agency CNA reported this Sunday.
According to unidentified sources cited by CNA, Taiwan’s military budget is expected to once again surpass the 3% of GDP threshold next year, though the exact figure will depend on the official economic growth projection for 2027.
The amount of 1.1 trillion Taiwanese dollars, which will be announced on August 20 following an Administration meeting, encompasses both the funds managed by the Ministry of National Defense and funding for the Coast Guard, military veterans and special military procurement projects, among others, according to the agency.
The central Government’s general budget for 2026, which still has not received approval from the opposition-controlled Parliament, reserved 949.5 billion Taiwanese dollars (25.4 billion euros) for Defense, equivalent to 3.32% of Taiwan’s GDP at the time the estimate was made. This latest increase falls within the goal of the self-governed island’s President, William Lai Ching-te, to continue raising defense spending year after year until reaching 5% of GDP by 2030.
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The decision responds not only to growing military pressure from Beijing, which considers Taiwan an “inalienable part” of Chinese territory, but also to demands from Washington, which insists that Taipei should spend more on its own Defense.
Beijing considers Taiwan a Chinese province and does not rule out the use of force to bring the island under its control. In recent years, it has intensified military pressure, sending aircraft and warships near the territory almost daily.
Since Xi Jinping came to power in 2012, China has also promoted a deep modernization of its armed forces, with new aircraft carriers, next-generation combat aircraft and advanced missiles. Beijing, for its part, has already announced a 7% increase in defense spending for 2026, to around 1.91 trillion yuan (about 244.9 billion euros), a slightly lower growth rate than the roughly 7.2% recorded in the previous three years.
Taiwan held the fifth day of the live-fire phase of the annual Han Kuang military exercises on Sunday, with the Taiwanese President inspecting troops in the city of Taoyuan under heavy rain caused by Typhoon Dolphin. Accompanied by Defense Minister Wellington Koo and National Security Council Secretary-General Joseph Wu, the head of state was briefed on maneuvers responding to a potential Chinese invasion.
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As part of these operations, the Military Police Command carried out an exercise in Taipei, in coordination with local authorities and the subway network, simulating the underground transport of troops and logistics to strengthen urban resilience.
Simultaneously, in the Penghu archipelago, the Navy’s Coastal Operations Command tested the rapid deployment of mobile anti-ship missiles to reinforce an asymmetric defense network, a military strategy in which a side with fewer resources uses unconventional tactics to offset disadvantages and weaken a superior opponent.
Considered Taiwan’s largest annual war games since their creation in 1984, the Han Kuang exercises aim to assess the country’s combat readiness in the face of the threat from Beijing. This year’s 42nd edition is divided into two stages, a tactical simulation phase held in April and the live-fire exercises taking place between August 5 and 14.
Taiwan’s parliament recently approved a supplementary budget of 24.8 billion dollars (21.4 billion euros) for the acquisition of American weapons, below the 40 billion dollars (34.6 billion euros) proposed by President William Lai. Taiwan’s Government is still awaiting approval from Washington for a new arms sale package worth 14 billion dollars (12.1 billion euros), whose authorization has been pending for several months.
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Taiwan obtains most of its military equipment from the United States, the island’s main informal ally in the face of China’s territorial claims.
