Taiwan Plans to Raise Defense Budget to 3% of GDP in 2026

Taiwanese Prime Minister Cho Jung-tai announced on Thursday that the government will increase the island’s defense budget for 2026 to more than 3 percent of its gross domestic product (GDP).

The proposal will require parliamentary approval before it comes into effect.

Speaking at a press conference, Cho stressed that the move reflects Taiwan’s determination to safeguard national sovereignty and security. He said the increased spending also underlines the island’s commitment to maintaining peace and stability in the Indo-Pacific region, as well as its shared responsibility to the wider international community.

According to Cho, the government has allocated NT\$949.5 billion (US\$31.1 billion), equal to 3.23 percent of GDP, for defense expenditure in 2026. The budget has been calculated using NATO models and standards, covering not only the armed forces but also the coast guard.

Taiwan has steadily boosted military spending in recent years amid growing pressure from China, which views the island as part of its territory and has vowed to reclaim it, by force if necessary.

The new budget proposal must still be ratified by parliament, where opposition parties, generally more aligned with Beijing, have previously proposed cutting or freezing portions of defense spending.