Taiwan's Parliament Approves Delayed Budget, Keeps Drone Spending Intact

Taiwan's opposition-controlled parliament approved the government's annual budget late on Friday, ending a record delay that had stalled state funding for months. The passage includes full funding for a key drone programme aimed at strengthening the island's defences.

The budget, originally proposed at T$3.034 trillion ($94.79 billion), was reduced by T$48 billion during legislative review. However, the T$63.4 billion earmarked for drone systems passed without cuts, preserving a military modernisation effort intended to deter China, which claims Taiwan as its own territory.

President Lai Ching-te, whose Democratic Progressive Party lost its parliamentary majority after the 2024 election, urged lawmakers to return to professional and reasonable budget review. He stressed that political divisions should not disrupt the normal functioning of the state.

The two main opposition parties, which have used their majority to push their own agenda, defended the outcome. Fu Kun-chi, caucus whip for the Kuomintang, said the opposition showed "great goodwill" by approving 98.4% of the general budget to allow the country to operate normally. He added that the government must respect legislation passed by parliament.

The delay stemmed from repeated clashes between ruling and opposition parties, with the budget legally due for review by the end of last year. In December, Taiwan's premier refused to enact opposition-passed local government spending plans, calling them fiscally unsound and inviting a no-confidence vote.

Taiwan's cabinet is set to formally propose next year's budget on Thursday, which includes a 16% annual increase in defence spending.