Drones, coast guard funding in Taiwan's trillion-dollar defence budget

Taiwan's government on Thursday proposed an 18 per cent rise in defence spending for next year, including for drones and missiles, taking it above TW$1 trillion ($31.41 billion) for the first time as Taipei bolsters its military to ward off China.

The budget details come as Beijing, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past few years to assert its claims, which Taipei strongly rejects.

Taiwan also faces calls from Washington to spend more on its own defence, mirroring US pressure on Europe, something President Lai Ching-te has enthusiastically embraced.

The government said in a statement following a cabinet meeting to approve the 2027 general budget that defence spending in 2027 would reach TW$1.1225 trillion, exceeding three per cent of gross domestic product.

Hsieh Chi-hsien, who heads the defence ministry's comptroller bureau, told reporters that the ministry's plans include supplementary spending on drones and missiles, for which the government had previously been unable to get parliamentary approval.