Taiwan to propose record $31 billion defense budget on August 20
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Taiwan's cabinet will propose a 16% annual defense spending increase by 2027, taking the island's military budget past $31 billion for the first time. The draft, exceeding 3% of GDP, will be formally submitted on August 20. The buildup proceeds even as China has raised its own military budget by 7% to $283.08 billion and conducts regular exercises around the island.
The Budget Proposal
The draft allocates funds to the coast guard, veterans’ support, and special security projects, including indigenous submarine development. The 16% annual increase would lift defense spending above 3% of GDP for the first time. The cabinet will submit the plan to the legislature on August 20, with the target of reaching the full amount by 2027.
Geopolitical Context
China’s military budget grew 7% in March to $283.08 billion, according to official figures. The People’s Liberation Army has also intensified exercises near Taiwan, including 153 sorties by warplanes in a single week in June. Taipei frames the spending hike as a direct response to these pressures.
US Support
Washington has consistently backed Taiwan’s efforts to bolster its self-defense capabilities. The Biden administration approved $1.1 billion in arms sales to the island in 2025 alone. This budget aligns with US calls for allies and partners to shoulder greater defense burdens.
What's Next
The legislature is expected to debate the proposal after its August 20 submission, with final approval possible by year-end. It remains unclear how Beijing will respond to Taipei’s sustained defense buildup amid already heightened cross-strait tensions.
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Taiwan to propose record $31 billion defense budget on August 20
