Taiwan Passes US$25 Billion Defense Budget Bill After Months of Deadlock
Taiwan’s opposition-controlled legislature has passed a compromise US$25 billion special defense budget bill after months of political deadlock and four rounds of cross-party negotiations. The final package is significantly smaller than the government’s original US$40 billion proposal.
Taiwan Lawmakers Pass $25 Billion Defense Bill After Stalemate
REPORTER:
After months of deadlock and debate over several competing proposals, Taiwan’s opposition-controlled legislature has passed a compromise special defense budget plan for $25 billion US dollars.
The role of an opposition party is to strike the best possible balance between national security and fiscal stability. During our talks with the US side we consistently stood firm on our principles. If a letter of offer and acceptance for an arms sale is issued that is of course acceptable but we can’t accept any without that.
REPORTER:
The final version is smaller than President Lai Ching-te's record $40 billion US dollar budget proposed last November. Lawmakers from the ruling Democratic Progressive Party say reduced military spending could create vulnerabilities in Taiwan’s defensive capabilities, especially at a time when China is stepping up its aggression toward the country.
During this period China has not stopped threatening Taiwan. Since 2013, China’s defense budget has grown by 7% annually, reaching US$255 billion. In the face of this threat we have seen one proposal of US$12 billion, only 30% of the original amount, and another one to US$25 billion, which is about 64% of the original proposal. What is being discounted here is our national security as well as our opportunity for industrial development.
REPORTER:
The $25 billion dollar defense bill will fund a major $11 billion US dollar arms package announced last December, as well as another expected sale this year, as long as Taipei receives a formal letter of offer and acceptance from Washington.
It also includes provisions that could potentially allow further funding for weapons, but that might depend on Taipei’s ability to secure offer letters in advance of approving more spending.
REPORTER:
The bill’s passage comes amid growing US pressure for Taiwan to pass the special defense spending bill. It also comes ahead of a pressing payment deadline for a US-made HIMARS artillery system, which had been pushed from March to later this month.
REPORTER:
Now that the bill has passed its third reading, it goes to President Lai, who needs to approve it before it goes into effect.
While the compromise bill clears a major political hurdle, debates over how much Taiwan should spend on defense are likely to continue, as pressure from Beijing continues to rise.
