Taiwan's cabinet is preparing to propose a 16% increase in the 2027 defense budget to strengthen the military amid rising pressure from China.
Foreign news agencies reported on 9 Aug 2026 that Taiwan's cabinet plans to raise the annual defense budget for 2027 by as much as 16%, pushing the total budget beyond 1 trillion new Taiwan dollars (approximately 1 trillion baht) for the first time, as Taipei accelerates efforts to strengthen its military against threats from China.
This move comes as China, which views democratic Taiwan as part of its territory, has increased military and political pressure over recent years to assert its claims, while Taipei has strongly rejected these claims.
Although Taiwan receives support from the United States, after Donald Trump returned to the presidency, he also pressured Taiwan to increase its self-defense budget to qualify for U.S. assistance.
Taiwanese media reported that the proposed budget exceeding 1.1 trillion new Taiwan dollars, to be unveiled on 20 Aug, includes funding for the coast guard, veterans, and various special projects, and will represent more than 3% of the gross domestic product (GDP).
The report added that detailed figures are awaiting final approval in the upcoming cabinet meeting.
The Taiwanese government has made modernizing the military a key policy priority and has pledged multiple times to increase defense spending, including developing domestically produced submarines, in response to escalating threats from China.
China has intensified pressure on Taiwan by dispatching military ships to patrol around the island almost daily and conducting periodic military exercises, the latest of which occurred in late December 2025.
Moreover, China is rapidly modernizing its own military with new aircraft carriers, stealth fighter jets, and missiles. In March, China announced a 7% increase in its defense budget for this year to 1.91 trillion yuan, roughly 9.34 trillion baht.
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Source:cna