Taiwan’s lawmakers pass 2026 budget after record delay

Taiwan's lawmakers have finally approved President Lai Ching-te's 2026 budget after an unprecedented delay. The Democratic Progressive Party (DPP), which holds a majority in parliament, has been locked in a political standoff with opposition parties over government spending, particularly on defense. The final budget for 2026 is projected to reach nearly T$3 trillion (around US$94 billion), a 3.8% increase from the previous year's spending.

After weeks of negotiations, the DPP agreed to a modest T$48 billion (around 1.6%) reduction in this year's budget, a move that came after the government had been waiting for approval for almost eight months. The lengthy delay marks the longest time parliament has taken to pass an annual general budget, underscoring the intensity of the political tensions.

Despite the delay, the opposition Kuomintang (KMT) has praised the DPP's efforts, noting that the number of proposed amendments to the budget has been reduced from over 1,700 to a final 40–50. KMT caucus leader Fu Kun-chi expressed hope that the budget approval would facilitate progress for the nation and improve the lives of its citizens.

Unlike in some other jurisdictions, Taiwan's annual budget approval does not trigger a government shutdown, as the previous year's spending plan automatically applies to the current year, ensuring that existing programs can continue to function.