Lai Announces Record NT$1.1225 Trillion Defense Budget for 2027, First Time Above NT$1 Trillion

President Lai Ching-te announced on August 17, 2026 that Taiwan's government will propose a combined 2027 defense budget (annual plus special budget) of NT$1.1225 trillion (approximately US$31-35 billion) — exceeding 3% of GDP and marking the first time Taiwan's defense spending has surpassed NT$1 trillion. The figure is roughly 16-18% above the 2026 level of NT$949.5 billion. Lai said 'Investing in defence is investing in peace; we will continue to build a more solid defence force to maintain peace and stability in the Taiwan Strait and the region,' framing the increase as a response to escalating Chinese military pressure. The Cabinet is set to unveil full 2027 budget details on August 20. China's Defence Ministry has previously dismissed Taiwan's military exercises as a 'wasteful charade.' Taiwan has separately pledged to raise defense spending to 5% of GDP by 2030.