Premier Cho Vows Remedies for Defense Budget Cut, Stresses Indigenous Industry Growth
After the Legislative Yuan drastically cut the Executive Yuan's NT$1.25 trillion special defense budget to NT$780 billion, Premier Cho Jung-tai stated on the 19th that the government is devising remedies, including a supplementary budget. However, he emphasized that the focus isn't just on the budget figures but on using this as an opportunity to develop the indigenous defense industry (like drones), solidify Taiwan's position in the global democratic supply chain, and link related industries in Taichung, New Taipei, and other areas.
📋 Article Processing Timeline
- 📰 Published: May 19, 2026 at 18:44
- 🔍 Collected: May 19, 2026 at 19:01 (17 min after Published)
- 🤖 AI Analyzed: May 19, 2026 at 19:21 (19 min after Collected)
The Executive Yuan's proposed eight-year NT$1.25 trillion special defense act saw its budget ceiling reduced to NT$7,800 billion in the version passed by the Legislative Yuan on the 8th. Premier Cho Jung-tai stated today that the Executive Yuan and the Ministry of National Defense have already studied remedial measures, but emphasized that the focus should not be solely on numbers or the budget itself, but on the development of indigenous defense capabilities, democratic supply chains, and the local defense industry.
This afternoon, the Legislative Yuan invited Premier Cho and relevant ministry heads to present a special report and answer questions on the preparatory matters for the special budget proposal concerning the first letter of offer and acceptance for the "Plan to Safeguard National Security and Strengthen Asymmetric Warfare Capabilities."
The Legislative Yuan passed the "Special Act for Procurement for National Security and Asymmetric Warfare Capability Enhancement" on the 8th, capping the budget at NT$7,800 billion and excluding commercial purchases and commissioned projects, a reduction of NT$470 billion from the Executive Yuan's original proposal. This morning, Cho reiterated that there are three possible responses: a supplementary budget, proposing another special act, or incorporating it into the annual general budget. The final choice will be the one that best meets the nation's needs and complies with the Constitution and the Budget Act.
During the special report session this afternoon, DPP Legislator Ho Hsin-chun asked Premier Cho which option is being considered and when a decision will be made.
Cho stated that he supports the entire NT$1.25 trillion special defense act and budget, guided by the sole belief of "keeping Taiwan in one's heart." However, he noted that opponents can always come up with a hundred baseless reasons, which is the current reality.
He explained that the Executive Yuan and the Ministry of National Defense have studied remedial measures, and under the spirit and regulations of the Constitution and the Budget Act, they could draft another special act and special budget, seek various forms of supplementary budgets, or use the annual general budget. However, he noted that all three options have aspects that require further in-depth consideration.
Cho pointed out that using the annual general budget could crowd out other parts of the overall budget, given the immense scale of future drone production, independent research and development, and international demand. Therefore, if other methods could be discussed in combination, financial planning would be more convenient. He stressed, however, that they must first respect further negotiations between the Ministry of National Defense and the U.S. side. The final remedy will also be discussed with the Ministry of National Defense and the Ministry of Foreign Affairs, with the President making the final decision.
Ho Hsin-chun expressed her concern that regardless of which option is chosen, the opposition parties will likely block it. She also mentioned that Taiwan's drone industry has the potential for twofold, threefold, or even infinite growth opportunities. Taichung, in particular, with its tradition of smart manufacturing and small-to-medium-sized enterprises, could undergo industrial upgrading and transformation under government guidance to tap into new business opportunities in the global "non-red" supply chain.
Cho said that the remedy is not just about the numbers or the budget itself. It encompasses the development of the indigenous defense industry, Taiwan's future demand within the democratic supply chain, international cooperation and trust, and the growth of Taiwan's domestic defense industry.
Cho emphasized that this is a golden opportunity. He stated that relevant industries, not only in Taichung but also across the central region and in other cities and counties including New Taipei City, must be linked together.
This afternoon, the Legislative Yuan invited Premier Cho and relevant ministry heads to present a special report and answer questions on the preparatory matters for the special budget proposal concerning the first letter of offer and acceptance for the "Plan to Safeguard National Security and Strengthen Asymmetric Warfare Capabilities."
The Legislative Yuan passed the "Special Act for Procurement for National Security and Asymmetric Warfare Capability Enhancement" on the 8th, capping the budget at NT$7,800 billion and excluding commercial purchases and commissioned projects, a reduction of NT$470 billion from the Executive Yuan's original proposal. This morning, Cho reiterated that there are three possible responses: a supplementary budget, proposing another special act, or incorporating it into the annual general budget. The final choice will be the one that best meets the nation's needs and complies with the Constitution and the Budget Act.
During the special report session this afternoon, DPP Legislator Ho Hsin-chun asked Premier Cho which option is being considered and when a decision will be made.
Cho stated that he supports the entire NT$1.25 trillion special defense act and budget, guided by the sole belief of "keeping Taiwan in one's heart." However, he noted that opponents can always come up with a hundred baseless reasons, which is the current reality.
He explained that the Executive Yuan and the Ministry of National Defense have studied remedial measures, and under the spirit and regulations of the Constitution and the Budget Act, they could draft another special act and special budget, seek various forms of supplementary budgets, or use the annual general budget. However, he noted that all three options have aspects that require further in-depth consideration.
Cho pointed out that using the annual general budget could crowd out other parts of the overall budget, given the immense scale of future drone production, independent research and development, and international demand. Therefore, if other methods could be discussed in combination, financial planning would be more convenient. He stressed, however, that they must first respect further negotiations between the Ministry of National Defense and the U.S. side. The final remedy will also be discussed with the Ministry of National Defense and the Ministry of Foreign Affairs, with the President making the final decision.
Ho Hsin-chun expressed her concern that regardless of which option is chosen, the opposition parties will likely block it. She also mentioned that Taiwan's drone industry has the potential for twofold, threefold, or even infinite growth opportunities. Taichung, in particular, with its tradition of smart manufacturing and small-to-medium-sized enterprises, could undergo industrial upgrading and transformation under government guidance to tap into new business opportunities in the global "non-red" supply chain.
Cho said that the remedy is not just about the numbers or the budget itself. It encompasses the development of the indigenous defense industry, Taiwan's future demand within the democratic supply chain, international cooperation and trust, and the growth of Taiwan's domestic defense industry.
Cho emphasized that this is a golden opportunity. He stated that relevant industries, not only in Taichung but also across the central region and in other cities and counties including New Taipei City, must be linked together.