A key national defense budget has become the center of a political battle in Taiwan. US$5 billion in national security funds are stalled, as the ruling DPP urges the opposition KMT and TPP to approve the package. The special budget, introduced by the Cabinet in April, aims to fund drones, coast guard patrol ships and cybersecurity upgrades in response to growing pressure from China. The opposition argues the plan lacks transparency and should be handled through the regular budget process, proposing instead to give cash stimulus payments to citizens.
00:00Five billion U.S. dollars in national security funds are at stake, as the ruling Democratic
00:05Progressive Party asks the opposition Kuomintang and Taiwan People's Party to approve the money.
00:11The five billion is part of a special budget act put forward by the cabinet, rather than
00:16a normal budget bill.
00:17It was submitted in April amid concerns about how U.S. tariffs might affect Taiwan's economy
00:22and society, although those tariffs are now in a 90-day pause.
00:26The package in full totals over 13 billion U.S. dollars, covering not just national security,
00:32but also labor and health insurance and support for industry and employment.
00:36But the two biggest and most controversial parts are the five billion allocated for defense
00:41and the more than three billion in subsidies for Taiwan's struggling power utility.
00:47The ruling party says that the national security funds will pay for new air and sea drones,
00:51more patrol ships for the Coast Guard, a thermal and infrared camera system along the coastline
00:56to catch smaller boats, and cyber security upgrades.
01:00The DPP says this money is necessary, given the increased aggression and gray zone tactics
01:04used by China against Taiwan, particularly at sea.
01:09The opposition has criticized this five billion, saying it should go through the normal defense budget process, rather than being part of this special budget which, they say, was meant to deal with U.S. tariffs.
01:24They also say the money lacks transparency, with the Cabinet giving no line-by-line list of how it will be spent.
01:44The opposition has proposed instead to use that money to give direct cash payments to every citizen, essentially stimulus money.
01:51Now there's about a month left of negotiation time before the special budget moves on to its next phase.
01:57But unless a deal is reached, the opposition, which has a majority in the legislature, is likely to pass their version of the package.
02:05Chris Ma and Chris Gorin in Taipei for Taiwan Plus.
