Addressing a meeting about next year's budget, Lai confirmed reports in official media earlier this month that 2027's overall defence budget will exceed T$1 trillion for the first time, reaching T$1.1225 trillion.
That will exceed 3% of gross domestic product, Lai said, according to a transcript of the remarks released by his office.
This "demonstrates Taiwan's determination to strengthen its self-defence capabilities", he added.
"Investing in defence is investing in peace; we will continue to build a more solid defence force to maintain peace and stability in the Taiwan Strait and the region," Lai said.
Military modernisation and budget politics
Taiwan's government has made military modernisation a key policy platform and has repeatedly pledged to spend more on its defences, including developing made-in-Taiwan submarines, given the rising threat from China.
China's military operates almost daily around Taiwan, and holds periodic war games, the last in late December.
But Lai also faces a challenge from Taiwan's opposition-dominated parliament, which only passed this year's budget late on Friday after months of delays.
The two main opposition parties say they will not write blank cheques for the government and have a duty to scrutinise spending plans and cut waste.
Lai on Friday called on parliament to review the budget on the principles of "professionalism, reasonableness, and proportionality".
($1 = 31.8450 Taiwan dollars)
Taiwan sets record defence budget above T$1 trillion
TAIPEI, Aug 17 (Reuters) - Taiwan is determined to strengthen its defences as an investment in peace, President Lai Ching-te said on Monday, confirming that proposed defence spending for next year will rise by 16% and exceed T$1 trillion ($31.40 billion) for the first time.
Taiwan's cabinet will formally unveil next year's budget on Thursday, including a breakdown of where defence spending will go.
The announcement comes as China, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past few years to assert its claims, which Taipei strongly rejects.
But Taiwan also faces calls from Washington to spend more on its own defence, mirroring U.S. pressure on Europe, something Lai has enthusiastically embraced.
EWT•
