Taiwan passes defense budget after record delay, retains drone funding

Taiwan's parliament has ended a record 266-day deadlock by approving the government's annual budget, securing vital funding for a drone program crucial to the island's defense against China. The $93 billion budget passed late Friday, overcoming significant political friction between President William Lai Ching-te's administration and opposition parties.

The approved funding specifically supports drone development, despite an earlier threat by the main opposition party, the Kuomintang, to cut it by 70 percent. The Kuomintang ultimately withdrew the proposed cut after determining there was no wasteful overlap between development and procurement programs.

However, the budget process involved several reductions. These included a 60 percent cut to special allowances for government agency heads, a 2.5 percent reduction in military equipment and facilities spending, and a 50 percent cut to media policy and publicity budgets. Before this vote, the government operated under a provisional budget to maintain essential services.

Legislative Speaker Han Kuo-yu described the prolonged delay as having caused "social division and a constitutional impasse," urging both ruling and opposition camps to seek greater compromise. President Lai acknowledged parliamentary oversight as an important constitutional duty. This budget approval follows a previous instance in May where the legislature cut a proposed $40 billion special defense budget, removing funding for domestically produced combat drones while retaining funds for U.S. arms purchases.

The urgency is underscored by Taiwan's military holding fewer than 5,000 drones, compared to China's reported order of nearly one million for this year. Beijing claims self-ruled Taiwan as its territory and has intensified military pressure on the island.

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social division and a constitutional impasse