On the 20th, Taiwan’s Executive Yuan approved the 2027 central government general budget proposal, in which the overall national defense budget exceeds NT$1 trillion for the first time, reaching NT$1.1225 trillion (approximately RM142.2 billion). Based on the Executive Yuan’s latest estimate of the 2027 Gross Domestic Product (GDP), this accounts for about 3.01%—the first time it has surpassed 3% of GDP.
This overall defense budget includes not only the Ministry of National Defense’s main budget of NT$691.9 billion, but also NT$218.2 billion in special budgets, NT$60.7 billion in non-operating special funds, as well as, according to NATO statistical standards, retirement payments for retired military personnel and Coast Guard expenditures.
The Executive Yuan pointed out that the general budget proposal will be submitted to the Legislative Yuan for review before the end of August. For the 2027 fiscal year, both government revenue and expenditure are projected at NT$3.9266 trillion, achieving a balanced budget. The government has also budgeted NT$179 billion to repay maturing debts and will borrow the same amount to fund this, thereby maintaining its “substantive zero borrowing” goal.
Premier Cho Jung-tai stated that the new year’s policy plan is aligned with the nation’s development needs and in response to public expectations, turning President Lai Ching-te’s policy vision into concrete policies, and the budget has been prepared accordingly.
In recent years, the United States has continued to urge Taiwan to increase its defense spending to strengthen its defensive capabilities in response to the security situation across the Taiwan Strait. President Lai Ching-te previously stated that he would promote raising defense spending to more than 3% of GDP. With this budget proposal, Taiwan is formally proposing for the first time a defense budget that exceeds this target.