Taiwan to Fund Defense Shortfall via Record Supplementary Budget After Legislative Cuts

Taiwan's Executive Yuan is set to bolster defense funding through its upcoming annual budget and a record-breaking supplementary budget, aiming to offset significant cuts made by the legislature to a special NT$1.25 trillion defense bill. The legislative bloc, primarily from the KMT and TPP parties, reduced the proposed special budget, prompting the government to find alternative funding sources.

The supplementary budget is projected to surpass NT$300 billion, marking an all-time high. This financial injection is intended not only to cover the shortfall in defense spending but also to address other critical areas. These include subsidies for gasoline and diesel, public transportation, taxis, and agricultural inputs like fertilizer, responding to regional instability and economic pressures.

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The NT$1.25 trillion defense special budget was significantly cut by KMT and TPP legislators; the Executive Yuan will 'make it up' through next year's general budget and this year's supplementary budget.

Additionally, the budget will accommodate a planned salary increase for civil servants, military personnel, and public school teachers, effective July, costing approximately NT$10.7 billion. It also includes provisions for increased social welfare benefits, such as the old farmer's pension and six major social assistance programs, benefiting over 3.18 million people. Funds are also allocated for measures to stabilize the pork market due to African swine fever and for disaster reconstruction efforts.

Crucially, the government plans to fully restore the NT$470 billion difference cut from the defense special budget. While NT$210 billion for the "Self-Reliant National Defense Unmanned Vehicle Procurement Special Act" has already been proposed, the remaining NT$260 billion will be incorporated into annual budgets and the supplementary budget. This ensures that President Lai Ching-te's "Taiwan Shield" initiative, which includes the procurement of advanced missile systems like the Sky Bow missile system, will proceed as planned, demonstrating the government's commitment to national security despite legislative challenges.

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The supplementary budget will cover the NT$470 billion difference cut from the Executive Yuan's version of the defense special budget of 1.25 trillion yuan, which was reduced to 780 billion yuan by KMT and TPP legislators.