Taiwan Budget Standoff Raises National Security Concerns

 

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REPORTER:  

Troops in Taiwan fire US-made Stinger and Javelin missiles while F16 fighters patrol its skies.

 

These weapon systems that help boost Taiwan’s deterrence and asymmetric capabilities might be severely undermined if the 2026 general budget is not approved.

 

Defense spending makes up a big chunk of the budget under debate, totaling around 18 billion US dollars, which has prompted officials to call for swift action.

 

BITE:  

Whether it’s the annual budget  

or the special [defense] budget  

we hope the legislature will send our budget  

to the relevant committee  

so it can start being reviewed.  

As I said before  

we are willing to carefully compile the budget  

with legislative oversight.

 

REPORTER:  

Without budget approval, Taiwan’s coast guard could also face funding shortfalls, including money to upgrade aging surveillance systems and to support an AI-based platform aimed at strengthening information security and improving coordination between government agencies.

 

The Ocean Affairs Council, which oversees the coast guard, is calling for public support.

 

BITE:  

From [2022] up to this latest round of military drills  

Taiwan’s Coast Guard has responded  

to seven Chinese military exercises.  

We are a highly disciplined, highly efficient  

and highly professional force.  

So I want to call on the public to trust the navy  

and to trust the armed forces.  

We have the capability to deal with  

all military activities and gray-zone harassment  

in the waters around us.

 

REPORTER:  

But the main opposition Kuomintang says Lai administration officials haven’t effectively communicated with the committees but have instead only been issuing public statements.

 

BITE:  

So far  

not a single official  

has spoken to legislators [on the proposal]  

to the comptroller-general or to the Cabinet  

to let lawmakers know  

that these budgets are urgent and important  

that your urgent needs must be met.  

So when you claim these are urgent needs  

I think you're making a false claim of urgency.

 

REPORTER:  

The 2026 budget stalemate comes as Taiwan’s ruling and opposition parties remain divided over a separate special defense budget worth 40 billion US dollars, the biggest on record.

 

It also comes just after China carried out large-scale military drills around Taiwan, a move the ruling Democratic Progressive Party says underscores the urgency of passing the proposed budget.

 

Officials also say it's not just security that the stalled budget could affect. Train services, disaster relief and education could also be on the line. The ruling party is now pressing lawmakers to approve the proposed funding as soon as possible.