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Taiwan Defense Budget Standoff Deepens as Parties Clash Over NT$1.25 Trillion Plan

Published: April 21, 2026
The Kuomintang President candidate Hou Yu-ih (L) and Vice President candidate Chao Shao-Kang attend the international press conference on Jan 11, 2024 in Taipei, Taiwan. (Image: Sawayasu Tsuji/Getty Images)

According to the Taipei Times, the Legislative Yuan is about to enter another round of negotiations on the draft Special Defense Act. However, significant differences remain between ruling and opposition parties over the scale of the arms procurement budget and how it should be allocated, causing continued delays in the review process. As the negotiation deadline approaches, how to strike a balance between defense needs and fiscal burden has become a key focus of public attention. Former China Broadcasting Corporation chairman Zhao Shao-kang proposed a special arms procurement budget of NT$810 billion, drawing widespread attention.

The Executive Yuan has proposed a special budget totaling NT$1.25 trillion, emphasizing the need for a comprehensive approach to building national defense capabilities. In contrast, opposition parties advocate for a reduced scale. The Taiwan People’s Party proposes a plan of about NT$400 billion, while the Kuomintang leans toward a baseline of about NT$380 billion, while retaining flexibility for future adjustments. The significant differences in proposed amounts, combined with unresolved issues over procurement items and review mechanisms, have led to a legislative deadlock.

Zhao Shaokang proposes NT$810 billion version, urges KMT chair not to delay arms procurement

Against this backdrop, former CTV chairman Zhao Shaokang put forward a compromise proposal. He suggested using the Executive Yuan’s version as a base, but excluding domestic procurement items and allocating approximately NT$810 billion for arms purchases from the United States. Under his proposal, about NT$350 billion worth of cases that already have Letters of Offer and Acceptance from the U.S. would be prioritized for approval, while the remaining NT$460 billion would be temporarily frozen until the relevant LOAs are obtained, after which they could be unfrozen.

Zhao said the plan aims to balance parliamentary oversight responsibilities with international arms procurement commitments. Through a phased review mechanism, it would maintain scrutiny while also responding to the needs of international cooperation. He also emphasized that on major defense issues, all parties should adopt a pragmatic approach to finding compromise solutions.

He then directly addressed Kuomintang chairperson Cheng Li-wen, saying: “Cheng Li-wen is planning to visit the United States in June—why not take this budget proposal with you to the U.S.? Would the Americans welcome that? Would they not block you or make things difficult for you? Don’t delay any further. With the budget stuck here, this is not a workable situation.”

Taiwan’s Kuomintang Chairperson Cheng Li-wen speaks during a press conference in Beijing on April 10, 2026. China’s President Xi Jinping met Taiwan’s opposition party leader Cheng Li-wun in Beijing on April 10, telling the visiting delegation he had “full confidence” that Taiwanese and Chinese people would be united. (Image: ADEK BERRY / AFP via Getty Images)

Democratic Progressive Party calls for cross-party consensus

In response, Democratic Progressive Party legislators said they are willing to view the proposal as a “first step of goodwill” and consider it as one possible basis for negotiations. However, they still insist that, according to the Executive Yuan’s version, arms procurement, commissioned manufacturing, and commercial purchases should be included in an integrated plan, emphasizing a “no division of arms procurement into two halves” approach and a three-stage implementation pathway. They urged all parties to reach consensus through rational dialogue to ensure the integrity and consistency of national defense development.

Within the Kuomintang, however, no unified position has yet been formed. Some legislators noted that the scale of the budget still needs flexible adjustment depending on the progress of obtaining U.S. Letters of Offer and Acceptance and actual defense requirements, indicating that internal discussions are still ongoing.

In addition, some arms procurement projects are already facing payment deadline pressures. If the relevant legislation is not passed in time, procurement schedules could be affected, potentially impacting defense deployment and international military cooperation.

Overall, the Special Defense Act involves not only a large-scale budget allocation but also national security and foreign relations. With cross-party differences still unresolved, whether future negotiations can reach consensus and advance the bill remains to be seen.

By Li Ming