After many months of contention over Taiwan’s government spending, the pan-Blue camp seemed to finally relent on August 14. The budget was finally passed on that day – 266 days past the deadline, and almost one year after the Executive Yuan originally submitted the budget for consideration on August 29, 2025.
The eventual passage of the budget occurred amid growing concern that defense spending was being held up – especially funding for drones.
The Kuomintang (KMT) – which currently holds the majority in the legislature along with its third-party ally, the Taiwan People’s Party (TPP) – had previously suggested that it would cut funding or impose funding freezes on drone spending, alleging that the Democratic Progressive Party (DPP) was using the drone industry to funnel money to untested companies and line its pockets. Reports at the time in pan-Green media outlets also suggested that China hoped to see drone spending blocked and had directed United Front Work Departments to coordinate to influence public opinion in Taiwan.
However, the KMT seemed to suddenly reverse course after an article in The Economist accused the party of failing to protect Taiwan’s democracy out of the political selfishness of its politicians.
