Taiwan’s mega defence budget signals determination to head off China threat

Sunday Extra - Separate stories podcast · Aug 22, 2026 · 14m

This week Taiwan set out the 2027 defence spending proposal, which would increase military spending by 18 percent.However, the government of Lai Ching-te has only just managed to pass the 2026 budget after months of political opposition from the KMT, so whether next year’s budget will pass without significant cuts remains to be seen.All this political wrangling is happening in the context of a continued ramp up of pressure by China, including more frequent 'patrols on the island’s East Coast. At the same time, Taiwan is simultaneously upgrading its military preparedness, and during the annual…