Taiwan's government is pushing a balanced budget and new defense spending through a hostile legislature, a test of whether political gridlock will stall the island's finances again.

• Premier Cho Jung-tai made four requests of lawmakers: pass the 2027 central government budget, a supplementary 2026 budget, a special defense procurement budget, and priority bills.
• The main budget is balanced at NT$3.93 trillion with no new borrowing, and debt as a share of the total hit a record low.
• The supplementary budget adds pay raises for military, civil servants, and teachers, plus more money for eight social welfare programs.
• A separate special budget will fund "asymmetric warfare" weapons purchases aimed at deterring China.
• The government says growth is strong and unemployment is at its lowest since 2001, while pointing to US tariff talks, the Ukraine war, and Chinese pressure as the year's main pressures.

Outlook: The budget fight is the session's main event, and past clashes between the ruling party and the opposition-controlled legislature suggest cuts and delays are likely.