Taiwan passes annual budget after long delay, including drone spending
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- Taiwan's parliament approved the annual government budget late Friday after a record delay, passing legislation that was legally required to clear by the end of last year.
- Lawmakers cut the proposed T$3.034 trillion ($94.79 billion) budget by T$48 billion, but the T$63.4 billion earmarked for drones passed without cuts to modernize military deterrence against China.
- President Lai Ching-te said budget review should 'return to principles of professionalism, reasonableness, and proportionality,' arguing political divisions should not disrupt the normal functioning of the state.
- Taiwan's cabinet will formally propose next year's budget on Thursday, which includes a 16% annual rise in defence spending.
- Kuomintang caucus whip Fu Kun-chi said the opposition showed 'great goodwill' by approving 98.4% of the general budget 'all to let the country function normally.'
- The premier has refused to enact opposition-passed local government spending plans, calling them fiscally unsound and inviting lawmakers to attempt a no-confidence vote.
Why it matters: By preserving T$63.4 billion in drone funding while cutting T$48 billion elsewhere, Taiwan's opposition-controlled parliament enabled military modernization against China — but only after Lai's government endured a record legislative delay. The 16% defence spending rise proposed for next year signals that armament timelines continue despite the gridlock, while Lai's public call for 'normal functioning' frames the standoff as a cost the opposition, not Beijing, is paying.
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