Taiwan's Executive Yuan approved a central government budget proposal for 2027 on 20 August 2026 totalling NT$3.9266 trillion, of which NT$1.1225 trillion is for national defence — the first time the figure has exceeded NT$1 trillion, equivalent to about US$35.1 billion and to 3.01 per cent of projected GDP. The figure combines the regular defence budget with the special budgets used to fund major procurement, and stands roughly 18 per cent above the NT$949.5 billion budgeted for 2026. President Lai Ching-te described defence investment as an investment in peace and stability across the strait and has set a target of 5 per cent of GDP by 2030. The proposal was to be sent to the Legislative Yuan for review by the end of the month. Separately, a proposed NT$210 billion drone procurement bill remains unresolved in the legislature, and an official audit has reported technical shortcomings in counter-drone development.
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