TAIPEI (Taiwan News) – The Cabinet on Wednesday passed a NT$294.99 billion (US$9.32 billion) special budget to pay for arms deals already approved by the US.
The Legislative Yuan is expected to review the budget next week, the Liberty Times reported. The new deal includes NT$8.8 billion for spending in 2026 under the first annual phase under the plan.
The Cabinet’s decision followed the approval by the Legislative Yuan of an opposition-backed special defense budget capped at NT$780 billion (US$24 billion). Under the program, a first phase of arms procurement from the US had a maximum limit of NT$300 billion, with a second phase carrying a ceiling of NT$480 billion.
Wednesday’s Cabinet proposal will require almost the entire amount of the special budget’s first phase. Of special concern is the US deadline of May 31 for an NT$800 million down payment on the High Mobility Artillery Rocket Systems. If Taiwan misses the deadline, the procurement case will be canceled and will have to be restarted.
The Legislative Yuan Finance Committee agreed to speed up the review of the Cabinet’s latest budget plan, the Liberty Times reported. Committee members will discuss the budget next week, on May 25 and May 27-28.
