Taiwan cabinet approves NT$607.6 billion extra budget for defense and welfare

Sep 03, 2026

Taiwan's government has approved a large supplementary budget aimed at defense, energy subsidies and welfare payments, good news for pensioners and public workers but dependent on a divided legislature.

  • The extra spending covers weapons, drones and ammunition, plus classified military programs, framed as too urgent to delay.
  • The biggest slice goes to holding down gas, electricity and cooking-fuel prices, a response to unrest in the Middle East pushing energy costs up.
  • Millions of people are waiting on backdated raises: farmer allowances, national pension payments, six welfare benefits and pay bumps for soldiers, civil servants and teachers.
  • Smaller amounts go to rebuilding after the Hualien barrier-lake disaster and to handling African swine fever losses, with a new child allowance starting next year.
  • Officials say higher revenue offsets the spending, so borrowing this year will actually be lower than first planned.

Outlook: The package now goes to the legislature, where opposition parties control the vote and the timing of these payments.

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