Lai Ching-te says funding drones through the annual budget could squeeze social welfare; KMT rejects the claim

Aug 26, 2026

Taiwan's ruling and opposition parties are fighting over how to pay for a big drone program, a spat that could delay defense spending and unsettle anyone watching the island's readiness.

  • President Lai Ching-te said the opposition's plan to fund drones through the regular annual budget would squeeze money for education and welfare.
  • The KMT called that illogical, pointing out next year's defense budget is already rising by a huge amount — far more than the roughly NT$40 billion a year the drone plan needs.
  • The KMT also noted the government just found room for a much larger cash handout to every citizen without claiming it would hurt welfare.
  • The real dispute is over special budgets: the KMT wants drones funded year by year under parliamentary oversight, not through off-book spending that dodges borrowing limits.
  • The KMT is pressing Lai to explain the gap and to stop using welfare cuts as a scare tactic.

Outlook: Expect a drawn-out budget standoff in the legislature, with the drone program caught between the two sides.

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