TAIPEI (Taiwan News) — Competing draft bills on Taiwan’s drone policy can be assessed through three key benchmarks, as debate continues between the Cabinet and opposition parties over procurement and funding, CNA reported, citing unspecified national security sources.
Earlier this month, the Cabinet proposed a special bill for drone development to fill funding gaps after opposition lawmakers cut support for a NT$780 billion (US$24.5 billion) special defense package. The proposal was rejected by the KMT and TPP majority in the legislature, according to UDN and PTS.
The KMT and TPP caucuses then unveiled their own versions of the bill, with all three drafts expected to be reviewed in the Legislative Yuan on July 3. The national security official said the proposals can be assessed based on three criteria.
First, whether they fully address gaps in earlier procurement plans and meet operational needs identified by the Ministry of National Defense. The official said the Cabinet’s version includes urgent capabilities developed through defense planning and joint discussions with partners, and warned that proposals that do not reflect these needs would not represent genuine support for defense development.
Second, whether they can meet planned procurement and deployment timelines. The official noted that building drone production lines, scaling manufacturing, and completing procurement take time, and that delays in legislation have already affected the schedule. A plan that does not align with existing requirements in terms of quantity and timing could weaken readiness.
Third, whether the proposals balance defense needs with industrial development. The official said bills framed as supporting industry but lacking necessary procurement and production capacity building would undermine both defense and industrial policy goals.
On funding structure, the official said special budgets allow programs to move forward more quickly in a single package, while annual budgeting could expose projects to delays during legislative review. Citing recent cases of delayed budget approvals, the official warned that similar delays in the future could significantly slow drone development.
The Cabinet proposal sets a budget ceiling of NT$210 billion (US$6.6 billion), to be allocated gradually through 2031. It includes procurement of 210,000 unmanned aerial vehicles and small unmanned “suicide” boats.
The KMT's draft bill proposes NT$240 billion in drone-related spending over six years, averaging about NT$40 billion per year through the regular budget process. The proposal assigns oversight to the Ministry of Economic Affairs and the Ministry of National Defense, requiring periodic reviews of defense goals and annual reports on industry development, according to LTN.
The Taiwan People’s Party caucus said its proposal prioritizes fiscal discipline, returning the funding to the regular government budget process and opposing the normalization of special budgets.
In response, DPP Spokesperson Lin Chu-yin (林楚茵) warned on Tuesday that placing such funding into the regular annual budget could put pressure on other spending areas such as social welfare, education, and local infrastructure. She also said annual budgeting could create uncertainty for both defense planning and the drone industry, discouraging long-term investment.
The Cabinet plan follows a special budget model similar to previous defense procurement programs. Lin said it would still undergo full legislative review and audit supervision, adding that such a budget would secure funding in advance, support a China-independent supply chain, and encourage industry participation.
The proposal comes after opposition lawmakers removed drone funding from a NT$780 billion special defense budget approved in May. The government has since sought to restore the funding through separate proposals, including for drone procurement.