Taiwan's Legislature Agrees for Cabinet to Draft Special Budget for First Batch of Military Procurements

Following cross-party negotiations on May 19th, Taiwan's Legislative Yuan agreed to allow the Executive Yuan (Cabinet) to prepare a special budget for the first batch of military procurements under the "Special Act for the Procurement of Programs to Safeguard National Security and Enhance Asymmetric Warfare Capabilities." The move addresses the urgency of an approximately NT$800 million initial payment for the HIMARS rocket system due on May 31. Premier Cho Jung-tai is scheduled to report to the legislature on the budget's preparation on May 20, after which the budget will be submitted for review.
政策NQ 3/100出典:PR Times

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  • 📰 Published: May 19, 2026 at 18:22
  • 🔍 Collected: May 19, 2026 at 18:31 (9 min after Published)
  • 🤖 AI Analyzed: May 19, 2026 at 18:49 (17 min after Collected)
Cross-party caucuses of the Legislative Yuan agreed today through negotiations for the Executive Yuan to prepare a special budget for the first batch of Letters of Offer and Acceptance (LOAs) for procurement, in accordance with the "Special Act for the Procurement of Programs to Safeguard National Security and Enhance Asymmetric Warfare Capabilities." The legislature will reconvene at 2:30 PM on May 20 to invite Premier Cho Jung-tai to report on the preparation process of the special budget and to answer questions.

On May 8, the Legislative Yuan passed the third reading of the "Special Act for the Procurement of Programs to Safeguard National Security and Enhance Asymmetric Warfare Capabilities." It stipulates a budget ceiling of NT$300 billion for the first batch of military procurement LOAs and NT$4800 billion for the second batch. The Executive Yuan is required to submit a relevant special report within one month of the act's passage. Only after obtaining the Legislative Yuan's consent can the budget be drafted, and it must be sent to the Legislative Yuan for review within two months.

The initial payment of approximately NT$800 million for the High Mobility Artillery Rocket System (HIMARS) is due on May 31. The Ministry of National Defense recently reported to the Executive Yuan on "Unpassed Items of the National Defense Special Budget and Their Impact," stating its position remains to complete the payment by the end of the month. It will report to the Legislative Yuan as soon as possible, after which the Ministry of National Defense will prepare the budget proposal for submission to the Executive Yuan for review. After approval, it will be sent to the committee, and finally, an application will be made to disburse the initial payment under Article 84 of the Budget Act.

This afternoon, the Legislative Yuan invited Premier Cho Jung-tai and relevant ministry heads to present a special report on "Matters Concerning the Preparation of the Special Budget for the Procurement of the First Batch of Letters of Offer and Acceptance under the Program to Safeguard National Security and Enhance Asymmetric Warfare Capabilities" and to take questions.

After the questioning session, the meeting's chairman, Legislative Yuan Vice President Johnny Chiang, invited the whips of the cross-party caucuses to his office behind the main chamber around 4:30 PM to discuss subsequent matters, including whether to agree to the Executive Yuan's preparation of the special budget for the first batch of LOAs. The session was temporarily recessed.

At approximately 4:45 PM, Chiang re-entered the chamber and announced the conclusion of the cross-party negotiations: the Legislative Yuan agrees for the Executive Yuan to prepare the special budget for the first batch of procurement LOAs under the special act. The legislature will reconvene at 2:30 PM on May 20 to invite Cho Jung-tai to report on the budget's preparation and to answer questions.

On May 15, the Legislative Yuan's cross-party caucuses had reached a consensus that if, after the special report, the legislature agrees to the Executive Yuan's budget preparation, an additional session would be held on the afternoon of the 20th, requesting the Executive Yuan to deliver the special budget to the legislature by noon on the 20th.

The conclusion of the cross-party negotiations stated that all caucuses agree to add the special budget to the agenda as a report item. On May 20 at 2:30 PM, the Premier, the head of the Directorate-General of Budget, Accounting and Statistics, the Minister of Finance, the Minister of National Defense, and other relevant officials will be invited to report on the budget's preparation and take questions. The Kuomintang (KMT) and Democratic Progressive Party (DPP) caucuses will each send 5 representatives, and the Taiwan People's Party (TPP) caucus will send 2. Once questioning is complete, the bill will be sent for review, and all caucuses have agreed not to file a motion for reconsideration.