Taiwan passes 2026 budget after record delay, keeps drone funding

Aug 14, 2026

Taiwan finally passed its 2026 government budget after a record 266-day delay, a win for its defense buildup as drone funding survived opposition threats to gut it.

  • Lawmakers approved about NT$3 trillion ($93 billion) in spending, trimming the original plan by NT$48 billion.
  • The opposition KMT dropped its earlier plan to cut drone funding by 70%, so the full NT$63.4 billion for drones stayed intact.
  • Political deadlock had blocked passage for months, forcing the government to run on a stopgap budget just to pay staff and keep programs going.
  • Cuts landed elsewhere: agency chiefs' special allowances down 60%, military equipment down 2.5%, and government media and publicity budgets cut in half.

Outlook: The budget fight has fueled deep political division, and the speaker is urging both sides to compromise more to avoid another standoff next year.

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