Taipei: The legislative caucuses of Taiwan's opposition parties on Tuesday unveiled rival drone procurement bills, proposing to use the general budget to fund the acquisition of locally manufactured drones instead of a special budget, as suggested by the Cabinet.

According to Focus Taiwan, the main opposition Kuomintang (KMT) caucus has introduced a draft bill setting a spending cap of NT$240 billion (US$7.53 billion) over six years, with an annual spending limit of NT$40 billion. The bill mandates government agencies to brief the Legislative Yuan on procurement plans exceeding NT$100 million and to report annually on the progress of each plan to lawmakers. Additionally, suppliers of critical drone components, such as flight control and navigation chips, would need to pass information and supply chain security reviews.

The KMT caucus advocates for using the central government's general budget to fund the bill, aiming to "normalize" the procurement process and minimize corruption risk, as stated by KMT caucus secretary-general Lin Pei-hsiang during a news conference.

Simultaneously, the Taiwan People's Party (TPP) caucus presented its own domestic drone procurement bill, which does not include a spending cap. TPP caucus convener Chen Ching-lung emphasized the importance of "fiscal discipline" and expressed a desire to prevent special budgets from becoming standard practice. The TPP's bill requires the government to establish unmanned aerial vehicle development guidelines every four years, with a review every two years.

Taiwan's central government general budget allows for deficits up to 15 percent of total spending, whereas special budgets can surpass this threshold by issuing additional debt. The ruling Democratic Progressive Party (DPP) has previously supported special budgets to expedite and maintain public program implementation.

In reaction to the opposition bills, DPP spokesperson Lin Chu-yin warned that relying on the general budget could heighten fiscal pressure and potentially reduce spending on social welfare and education. She also noted that the annual planning and review process of the general budget might disrupt funding continuity, causing uncertainty in the drone industry and affecting its growth.

Earlier this month, the Cabinet proposed a special budget bill with a NT$210 billion spending cap for drone procurement, subject to legislative review. This proposal lacks annual caps, with funding allocated until the end of 2031, sourced from government borrowing or surplus budgets from previous fiscal years. The Ministry of National Defense has argued that a special budget would facilitate large, long-term orders with domestic defense firms and support innovation to keep pace with evolving drone technology.