Taiwan's opposition-led legislature is set to approve the full NT$63.4 billion drone budget and finish the overall government spending bill, easing a standoff that had threatened deep cuts — good news for the defense industry and the government's budget.

• Lawmakers agreed to pass all NT$63.4 billion for building up the drone industry and defense, shielding it from an across-the-board 1.5% cut.
• The opposition wants Taiwan's drone sector to become a second "protective mountain" like its chip industry, using its full parts supply chain to become a top global production base.
• The KMT insists the money be spread evenly over six years to give local firms steady orders, and demands strict procurement rules to block insider deals and subcontracting abuse.
• The opposition cut its number of budget proposals down to 75, with KMT leaders crediting cooperation from the smaller Taiwan People's Party.
• The ruling side warns that with the budget already eight months late and partly spent, cutting more than what's been used could paralyze the government.

Outlook: The full budget bill is expected to clear its final reading, but friction between the opposition-run legislature and the Lai administration over execution will continue.