Taiwan's 2027 defense budget tops NT$1 trillion, with lawmaker urging energy stockpiles in long-term planning

Aug 21, 2026

Taiwan is set to spend more than a trillion Taiwan dollars on defense for the first time, a signal to Washington that it is serious about defending itself and a warning to Beijing.

  • The cabinet approved a defense budget above NT$1.1 trillion, more than 3% of the island's economy.
  • Ruling-party lawmaker Chen Kuan-ting wants the money to cover more than weapons — energy stockpiles, backup power, food, communications, ports and other critical infrastructure.
  • The worry is not just an invasion but a Chinese blockade that cuts off shipping for a long stretch, leaving Taiwan short of gas, oil and food.
  • China has spent years building up strategic oil, gas and grain reserves plus solar and wind power, and Taiwan is being told to study how its rival prepares.
  • Opposition parties keep asking how long Taiwan could hold out under a blockade but resist paying for the stockpiles that would answer the question.

Outlook: The budget now goes to the legislature, where the fight will be over how much goes to weapons versus national resilience.

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