Taiwan's government has signed off on a 2027 spending plan that keeps defense above 3% of GDP, a mildly reassuring signal for anyone watching the China-Taiwan standoff, though the defense share actually shrinks from this year.

• Defense gets about NT$1.12 trillion (roughly $35 billion), counted the way NATO counts it — including military pensions and the coast guard.
• That is 3.01% of GDP, down from 3.32% in the 2026 budget, even as Lai Ching-te aims for 5% by 2030.
• The push follows years of Chinese warships and warplanes near the island and repeated drills encircling it.
• Total spending jumps nearly 30%, with big money for families — a monthly cash payment for every child under 18 — and for tech, including AI programs.
• The budget is balanced on paper, with borrowing only to repay old debt, and total debt stays well under the legal ceiling.

Outlook: The plan now goes to an opposition-controlled legislature that has cut and frozen defense money before, so expect a fight before anything is final.