Taiwan Cabinet to restore NT$1.25tn defense budget proposal

Taiwan's Executive Yuan intends to reinstate its full NT$1.25 trillion special defense budget proposal, a significant sum that was previously trimmed by the opposition-controlled legislature. Sources indicate the government will pursue this through a combination of next year's central government budget and a supplementary budget for the current year. This move aims to ensure comprehensive funding for national defense initiatives, including President William Lai's "T-Dome" plan and the Chiang Kung missile defense system.

The legislature had previously approved NT$780 billion of the special defense budget and an additional NT$210 billion for drone procurement. This leaves NT$260 billion of the original request to be covered. The government plans to allocate portions of this remainder through annual budgets over several years and through supplementary budgets, with specific allocations earmarked for the upcoming year's central budget and the current year's supplementary budget.

Beyond direct defense spending, the proposed budgets also address economic impacts stemming from the conflict in the Middle East. The Ministry of Economic Affairs is expected to request subsidies for gasoline and diesel, while the Ministry of Transportation and Communications plans to seek support for domestic airlines, intercity bus operators, and taxis. The Ministry of Agriculture is also anticipated to request subsidies for fertilizer. These additional measures are estimated to exceed NT$100 billion.

Furthermore, the budgets will accommodate increased personnel costs. An additional NT$10.7 billion is required for recent increases in professional and supervisory allowances for military personnel, civil servants, and public-sector teachers. The budgets also include provisions for increased allowances for elderly farmers, the National Pension program, and six major social welfare subsidies, which are to be retroactively applied.