Taiwan passes annual budget after long delay, including drone spending

Taipei – Taiwan's legislature has finally approved the government's annual budget, ending a record delay that had stalled crucial spending, including funds for a vital drone program aimed at enhancing the island's defenses. President Lai Ching-te called for a return to rational and professional budget reviews, urging lawmakers to set aside political disputes.

The budget, initially proposed by the cabinet last August, was legally due for approval by the end of last year. However, repeated clashes between the ruling Democratic Progressive Party (DPP) and the opposition-controlled parliament, where the DPP lost its majority after Lai's 2024 election win, led to significant delays. Opposition parties cited the need to prevent wasteful spending as their reason for holding up the budget.

Lawmakers ultimately voted to trim the proposed spending by T$48 billion from the original T$3.034 trillion ($94.79 billion). Significantly, $63.4 billion earmarked for the drone program was approved without cuts. This funding is critical for modernizing Taiwan's military and strengthening its deterrence capabilities against China, which considers the island its territory.

“

But budget review should return to principles of professionalism, reasonableness, and proportionality, and should not let political divisions affect the normal functioning of the state.

President Lai stated that while parliamentary oversight and budget review are constitutional duties, they should be conducted with professionalism, reasonableness, and proportionality. He stressed that political divisions should not impede the normal functioning of the state. The cabinet is set to formally propose next year's budget on Thursday, which reportedly includes a 16% increase in defense spending.

Fu Kun-chi, the whip for the largest opposition party, the Kuomintang, described the opposition's approval of 98.4% of the general budget as a "great goodwill" gesture to ensure the country's normal operations. However, he insisted that the government must respect legislation passed by the opposition, referencing ongoing disputes where the government has refused to enact certain laws. This includes a high-profile case where the premier stated in December he would not enact local government spending plans deemed fiscally unsound by the opposition.

“

all in order to let the country function normally