Legislature Passes 2026 Budget After Record Delay, Drone Funding Secured

Taipei: Taiwan's Legislature has approved the central government's 2026 budget, finalizing NT$2.9869 trillion (US$93 billion) in spending after a record 266-day delay. The budget includes NT$63.4 billion allocated for drone-related spending, which remained intact despite initial opposition.

According to Focus Taiwan, the opposition-controlled Legislative Yuan voted to cut NT$48 billion from the originally proposed NT$3.034 trillion expenditure. However, the NT$63.4 billion designated for the development and procurement of drones passed without reductions. The main opposition party, Kuomintang (KMT), had initially threatened to cut this funding by 70 percent but later decided against it, citing no evidence of overlap leading to wasteful spending.

The Cabinet had submitted the budget bill on August 31, 2025, but its review was delayed due to political deadlock. Despite a legal deadline for passage by the end of November 2025, this budget set a record as the latest in Taiwan's history to gain legislative approval. During the delay, the government operated under a provisional budget mechanism, ensuring essential payments and funding through available tax revenues.

Significant reductions in the approved budget include a 60 percent cut in special allowances for heads of government agencies, with some agencies facing complete elimination of funds that cannot be reassigned. Military equipment and facilities spending was reduced by 2.5 percent, while media policy and publicity budgets saw a 50 percent cut, except where expenditures are legally mandated.

The voting process began at 4 p.m., with the second reading completed by 5:50 p.m. and final approval at 6:08 p.m. Legislative Speaker Han Kuo-yu noted the budget review's prolonged nature had led to social division and a constitutional impasse, calling for greater compromise between ruling and opposition parties in the future.

Following the reductions, the total expenditure was set at NT$2.987 trillion, with projected revenue increasing by approximately NT$602 billion to NT$3.464 trillion. The Directorate-General of Budget, Accounting and Statistics will finalize adjustments to individual budget items.