In recent years, Taiwan has increased defense spending and strengthened its defense industry to produce more equipment and ammunition on the island. China claims that this island is part of its territory and threatens to seize it by force.
Read more After the storm in Panevėžys district, generators were used: some residents still do not have water
The spending proposal supported by opposition political forces – the Kuomintang (KMT) and the Taiwan People’s Party (TPP) – was passed in parliament after the plan submitted by President Lai Ching-te’s (Lai Ching-te) government was rejected.
The Lai Ching-te government wants Taiwan to be able to produce enough drones itself to repel a possible Chinese attack.
However, the government is constantly in conflict with the opposition controlling the parliament over how much funding to allocate to improving the island’s defense and how it should be financed.
The Lai Ching-te government wanted to allocate up to TWD 210 billion (USD 6.6 billion, EUR 5.7 billion) in a special budget for drones made in Taiwan, including coastal surveillance, attack, and underwater drones.
This spending would have been distributed over more than five years and overseen by the Ministry of Defense.
The KMT, advocating closer ties with China, and the TPP instead supported a proposal to allocate TWD 240 billion (EUR 6.5 billion) in spending over six years, which would be included in the annual budget.
Initially demanding an annual spending cap of TWD 40 billion (EUR 1.1 billion), the KMT agreed to show some flexibility. It also agreed that the drone procurement process would be managed by the Ministry of Defense.
Cabinet spokeswoman Michelle Lee later stated that although the government’s version was not supported, she “will make every effort to secure the necessary funding” for drone procurement as soon as possible.
“National security cannot afford delays,” said M. Lee.
US pressure
KMT legislator Hsu Chiao-hsin said before the vote that Taiwan “must sincerely promote localization and domestic production” to develop this industry.
“We need to support reliable manufacturers capable of ensuring non-red (non-China) supply chains, guarantee a certain level of cybersecurity, and maintain stable growth,” she said.
The government has already prepared its 2027 general budget.
The 2026 annual general budget was passed by legislators this month after a record delay.
US calls for legislators to pass the drone law have intensified in recent weeks. Republican legislator Young Kim said during a visit to Taipei last month that “time is running out.”
“Wars in Ukraine and Iran show that Taiwan needs to buy and produce drones on a massive scale,” Y. Kim said at the Presidential Office.
Taiwan remains highly dependent on US arms sales to deter China and faces Washington’s pressure to spend more on its security.
The war in Ukraine has shown Taiwan that smaller and more flexible weaponry, including drones, can be crucial in fighting an asymmetric war against a more powerful military.
The Lai Ching-te government has allocated a record TWD 1.1 trillion budget for defense spending in 2027, which accounts for more than 3% of GDP.
Read more Monika Gimbutaitė. Culture on the margins of the education program
