Taiwan Cabinet Approves Record $35.1 Billion Defense Budget for 2027
Nashnova编辑部
Taiwan's Executive Yuan approved a NT$1.12 trillion (≈US$35.1 billion) defense budget for 2027, pushing military spending to 3.01% of GDP — just past President Lai Ching-te's 3% target; the bill still needs approval from an opposition-controlled legislature where passage is far from certain.
Why is $35.1 billion being called a record?
The 2027 defense budget reaches NT$1.12 trillion (≈US$35.1 billion), the highest in Taiwan's history.
Military spending hits 3.01% of GDP, narrowly clearing President Lai Ching-te's 3% pledge.
This means → Lai's push to expand military readiness since taking office in spring 2024 now has a concrete budget number behind it.
Where does the money come from?
The Executive Yuan simultaneously approved a NT$3.93 trillion central government budget for 2027; defense is one of its largest line items.
Part of the defense funding sits inside that general budget; the rest comes from special budgets — ring-fenced appropriations outside the normal annual cycle.
In plain terms = the money is split across two pots: one inside the regular annual budget, one labeled "special" — together they add up to $35.1 billion.
Will the legislature let it through?
The Legislative Yuan is currently controlled by opposition parties, and the budget bill is expected to face significant resistance.
Precedent is not encouraging: the 2026 central government budget cleared the legislature only last week, marking the longest delay in nearly 30 years.
This means → even with cabinet approval in hand, this budget must still pass a legislature that has already signaled it is willing to stall — and the last round proved it.
Local elections on November 28 could further distract lawmakers and slow the review process.
A NT$10,000 cash handout — what does it have to do with defense?
The Executive Yuan also approved a NT$10,000 cash payment to every citizen.
Lai said the handout lets the public share in the economic gains driven by the AI boom.
Officials estimate the program will add roughly 0.35 percentage points to next year's GDP growth.
This reflects an attempt to pair a sharp military spending increase with a crowd-pleasing cash transfer — arming up and shoring up domestic demand at the same time.
Content is for reference only, not financial advice.