Taiwan’s cabinet is set to propose a 16% increase in defense spending for the year 2027, exceeding $1.1 trillion in Taiwanese currency for the first time, as reported by the official Central News Agency on Sunday. This move comes amidst efforts by Taipei to strengthen its military capabilities in response to escalating military and political pressure from China, which considers Taiwan its own territory, a claim strongly opposed by Taipei.
The proposed budget, scheduled to be revealed on August 20, will encompass funding for various sectors including the coast guard, veterans, and special projects. It is expected to surpass three percent of the gross domestic product, mirroring similar calls from Washington for Taiwan to enhance its defense capabilities. Taiwanese President Lai Ching-te has shown enthusiasm for increasing defense spending, aligning with the United States’ stance on bolstering defense.
Taiwan has prioritized military modernization as a key policy agenda, vowing to allocate more resources to defense, such as developing indigenous submarines, to counter the growing threats from China. China, on the other hand, has been intensifying military activities around Taiwan, conducting frequent drills and investing in modernizing its armed forces with advanced weaponry like aircraft carriers, stealth fighter jets, and missiles.
Amidst the ongoing Han Kuang military exercises in Taiwan, President Lai emphasized the importance of such drills in enhancing military preparedness and instilling confidence within the armed forces. He underlined the significance of maintaining stability and strength through rigorous training during peacetime, as demonstrated by the recent military exercises across different regions in Taiwan, including a simulation of a chemical weapons attack and decontamination drill on the east coast.
