Taiwan is preparing to take another major step in strengthening its military, with defence spending expected to rise by about 16% in 2027 and cross the T$1 trillion (£24bn; $31bn) mark for

the first time.

The proposed budget, which is expected to exceed T$1.1 trillion, will be unveiled on 20 August, according to Taiwan’s official Central News Agency. The figure is expected to represent more than 3% of the island’s gross domestic product, continuing Taipei’s drive to devote a larger share of national resources to defence.

The planned increase comes as pressure from China continues to intensify. Beijing regards Taiwan as part of its territory and has stepped up military activity and political pressure around the self-governed island in recent years. Taiwan rejects Beijing’s territorial claims and maintains its own democratic government and armed forces.

The spending increase also reflects growing pressure from Washington for Taiwan to assume a greater share of responsibility for its own security. The demand forms part of a wider push by the United States for its allies and partners to increase defence spending, particularly in response to a deteriorating international security environment.

President Lai Ching-te has strongly backed higher military expenditure, making defence and military modernisation central elements of his administration's policy.

The proposed package is expected to cover more than the armed forces alone. It will include allocations for Taiwan’s coast guard, veterans and a range of special defence projects, with the final figures subject to approval at a cabinet meeting.

Taipei has increasingly focused on expanding and modernising its military capabilities as it seeks to deter any potential Chinese attack. Among its priorities is the development of an indigenous submarine fleet, alongside broader efforts to strengthen Taiwan’s ability to defend itself.

The final budget is expected to provide a clearer indication of how far Taipei is prepared to increase defence investment as tensions across the Taiwan Strait continue to shape security policy in the region. Photo by 總統府, Wikimedia commons.