Taiwan plans 16% defence budget rise

Taiwan’s Cabinet will propose a 16 per cent rise in 2027 defence spending to more than T$1.1 trillion, according to The Straits Times. The proposed budget would exceed T$1 trillion for the first time.

The budget includes funding for the coast guard, veterans and special projects, and will, like this year, exceed 3 per cent of Taiwan’s gross domestic product. Detailed figures await the final Cabinet meeting.

Taipei is bolstering its military as China, which views democratically governed Taiwan as its own territory, has increased military and political pressure over the past few years. Taipei strongly rejects Beijing’s claims, while Taiwan also faces calls from Washington to spend more on its own defence, mirroring US pressure on Europe.

President Lai Ching-te has embraced higher defence spending, and Taiwan’s government has made military modernisation a key policy platform, including developing made-in-Taiwan submarines. China’s military operates almost daily around Taiwan and holds periodic war games.

China refuses to talk to Lai, calling him a “separatist”, while Lai says only Taiwan’s people can decide their future. Watching Han Kuang military drills in Taoyuan on Aug. 9, Lai said on Facebook: “Every bit of solid preparation in peacetime adds another measure of stability and strength for our nation.”