Taiwan’s opposition-led legislature on Thursday blocked a proposed NT$210 billion ($6.6 billion) special budget for drone development put forward by the Cabinet, instead backing an opposition-sponsored bill that would subject funding to annual parliamentary approval.
The Cabinet had sought approval for the full NT$210 billion funding package upfront, with the money to be spent over the 2026-2031 period.
Under the opposition proposal, however, funding would come through the regular annual budget, meaning the government would have to seek parliamentary approval for allocations each year.
The opposition, led by the China-friendly Kuomintang (KMT), would therefore retain greater oversight of spending. The Defence Ministry has warned that the annual budget process could delay procurement.
The opposition-backed legislation provides NT$240 billion over six years, or NT$40 billion annually, to develop the unmanned vehicle industry and strengthen national defence.
Defence Minister Wellington Koo has warned that the annual allocation may already be insufficient. Taiwan’s unmanned vehicle needs for 2027 alone are estimated at NT$42.1 billion, he said, meaning the NT$40 billion annual cap could fall short in the first year and disrupt military planning.
Legislative Speaker Han Kuo-yu said parliament will complete the proofreading of the bill before the next session begins on September 29 and submit it to the president for promulgation.
Taiwan faces a threat from China, which claims the self-ruled island as its territory and has not ruled out taking it by force.
The Defence Ministry expressed regret that the Cabinet’s proposal was not approved.
Since June, Premier Cho Jung-tai and Koo have repeatedly stressed the urgent need for the special budget to expand Taiwan’s military drone capabilities, including coastal surveillance and attack drones as well as small unmanned suicide boats.