But Lai’s government has been at loggerheads with Taiwan’s opposition parties, which have a majority in parliament, over how much to spend on boosting the island’s defence capabilities.
The main opposition party Kuomintang, which favours closer ties with China, and the Taiwan People’s Party passed a US$25 billion special defence budget in May, slashing by a third the amount sought by Lai’s Democratic Progressive Party.
The opposition stripped out around US$15 billion that the government had wanted to use for domestic drone procurement and other efforts to boost defences.
Lawmakers are now considering rival proposals for drone investment worth billions of dollars that could be passed as early as this week.
The parliament approved the government’s annual budget for 2026 on Friday after a record delay, and shortly before it is expected to receive next year’s spending proposal for review.
Opposition lawmakers agreed to cut this year’s budget by NT$48 billion, or around 1.6 per cent, nearly eight months after the government’s spending plan was supposed to be approved.
That is the longest it has ever taken parliament to pass an annual general budget. Parliament is likely to receive the 2027 budget for review by the end of August.
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