Taiwan seeks record 18% defence budget hike amid China tensions

Taiwan's cabinet unveiled the defence budget proposal on Thursday, marking a significant escalation in military spending as the self-governed island continues to modernise its armed forces. The proposed budget represents the first time Taiwan's annual defence expenditure will exceed the T$1 trillion mark, reflecting growing concerns over regional security.

The 18 per cent year-on-year increase comes as Taiwan faces mounting pressure from Beijing, which has ramped up military exercises and rhetoric regarding the island's political status. Taipei has increasingly focused on strengthening its defensive capabilities, including investments in missile systems, naval vessels, and air defence technologies.

The defence budget proposal must now be reviewed and approved by Taiwan's legislature before taking effect in 2027. The move is expected to face scrutiny as the government balances military modernisation with other budgetary priorities and fiscal constraints.

Taiwan's sustained increase in defence investment reflects the island's strategic assessment that military self-sufficiency is essential to deterring potential military action. The budget expansion aligns with broader efforts to enhance Taiwan's asymmetric warfare capabilities and demonstrate resolve to both Beijing and international allies.