Taiwan Approves 2026 Budget With Drone Funding After Record Delay

Taiwan's legislature has finally approved the government's 2026 budget, ending a record delay of 266 days. The opposition-controlled parliament passed the budget on Friday, which includes significant funding for drone development aimed at bolstering the island's defenses against China's growing military pressure. The approved budget authorizes spending of NT$2.98 trillion (approximately $93.06 billion).

A key allocation within the budget is NT$63.4 billion (about $1.98 billion) designated for the development and acquisition of drone technology. This initiative is part of Taiwan's broader strategy to enhance its defensive capabilities in response to China's persistent military assertiveness. Beijing considers the self-governing island an inalienable part of its territory and has not ruled out using force to achieve reunification.

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numerous unjustified cuts and freezes

Despite the budget's passage, President Lai Ching-te expressed strong dissatisfaction with the final text. He denounced "numerous unjustified cuts and freezes" that he believes were imposed by the opposition. Lai emphasized that while legislative oversight is crucial, political disputes should not impede the normal functioning of the country, stating that budget reviews must adhere to professional, rational, and proportional criteria.

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The supervision of the government and the deliberation of budgets are essential functions that the Constitution attributes to the Legislative Yuan (Parliament); but budget examination must be guided by criteria of professionalism, rationality, and proportionality, and political discrepancies cannot affect the normal functioning of the country.

The legislative process for this budget was notably protracted. The government initially submitted the bill on August 31, 2025, with an estimated expenditure of NT$3.034 trillion ($94.75 billion). However, ongoing disputes between the ruling party and the opposition prevented its timely passage, making it the latest budget ever approved in Taiwan's history. The administration had been operating under a provisional budget mechanism during the delay.

This approval occurs just days before the cabinet is set to present the 2027 budget on August 20. Reports indicate that the upcoming budget will feature a record military expenditure of NT$1.1 trillion ($34.35 billion). President Lai concluded by expressing confidence that a rational and professional debate will resume for the next budget, ensuring its timely passage.

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Once the central government's general budget for the next fiscal year is submitted, I am confident that a rational and professional debate will resume and that the process will conclude within the legal deadlines.