Taiwan Executive Yuan Finalizes 2027 Defense Budget at NT$1.1225 Trillion, Up 18%

Taiwan's Executive Yuan on August 20, 2026 finalized the 2027 central government budget, with total defense expenditure reaching NT$1.1225 trillion, or approximately 3.93% of Taiwan's GDP. The figure represents an increase of NT$173 billion, or 18%, from NT$949.5 billion in 2026. The Executive Yuan stated that the increase in total defense funding for 2027 mainly results from simultaneous rises in military investment, operational maintenance, and personnel maintenance costs.

According to the budget calculations by the Directorate-General of Budget, Accounting and Statistics, the Ministry of National Defense's allocation is NT$691.9 billion, an increase of NT$130.5 billion, or about 23.2% over 2026. Of the additional budget, military investment accounts for NT$259.1 billion, up NT$97.5 billion; operation and maintenance costs total NT$224.7 billion, an increase of NT$25.7 billion; and personnel costs comprise NT$208.1 billion, rising NT$7.3 billion.

The Executive Yuan had proposed a special defense budget of NT$1.25 trillion for 2026-2033 at the end of 2025, covering purchases from the United States, commercial procurement, and commissioned manufacturing. On May 8, 2026, the Legislative Yuan passed on third reading a NT$780 billion special defense budget law, led by opposition parties, limited to arms purchases from the United States that have already received priced offers.