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Taiwan finally passes $93 billion budget, keeps drone program funding

Taiwan's opposition-led legislature approved the $93 bn annual budget after a record 266-day deadlock, preserving money for a key drone development program.

After a historic 266-day impasse, Taiwan's opposition-controlled parliament passed the $93 bn budget, ensuring continued support for a drone programme central to the island's defence strategy against China. The Kuomintang had threatened a 70 percent reduction in drone funding but abandoned the proposal when it concluded the development and procurement tracks did not duplicate each other. Other reductions included a 60 percent cut to special allowances for agency heads, a 2.5 percent decrease in military equipment and facilities spending, and a 50 percent slash to media policy and publicity budgets.

Prior to the approval, the government relied on a provisional budget to pay civil servants and fund welfare programs. Legislative Speaker Han Kuo-yu warned that the prolonged delay fostered social division and a constitutional stalemate, urging both sides to seek compromise. President William Lai Ching-te emphasized that parliamentary review of the budget fulfills a constitutional duty.

Why it matters

The budget decision secures Taiwan's drone capabilities amid rising military pressure from China.

How this story developed

  1. Aug 5 Taiwan launches 10-day drills to test defenses against possible Chinese invasion
  2. Aug 12 Taiwan added an internet slowdown and new drone tests to the Han Kuang exercises.
  3. Aug 13 Taiwan conducted its first combined navy‑coast guard anti‑blockade drill, escorting a mock merchant ship and opening a navigation lane on the east coast.

In this story

budget approvaldrone programpolitical deadlockmilitary spendingTaiwanChinaKuomintangHan Kuo-yuWilliam Lai Ching-te
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