President Lai Announces 3-Pronged Approach to Counter Defense Budget Cuts
In response to the Legislative Yuan's failure to fully pass the special defense budget ordinance, President Lai Ching-te said the government will "mend the fences" by proposing a separate special ordinance, using supplementary budgets, and increasing the annual budget. This approach aims to facilitate commercial procurement, commissioned projects, and international cooperation, as well as to promote a self-reliant defense industry to produce unmanned land, sea, and air vehicles.
📋 Article Processing Timeline
- 📰 Published: May 20, 2026 at 11:27
- 🔍 Collected: May 20, 2026 at 11:31 (4 min after Published)
- 🤖 AI Analyzed: May 20, 2026 at 11:49 (18 min after Collected)
(CNA, Taipei, May 20, by reporters Kao Hua-chien, Wen Kuei-hsiang, Yeh Su-ping) President Lai Ching-te said today that in response to the Legislative Yuan's failure to fully pass the special defense budget ordinance, the government will rectify the situation by proposing a separate special ordinance. It will also utilize supplementary budgets and increase the annual budget to conduct commercial procurement, commissioned projects, and international cooperation, and to promote a self-reliant defense industry to produce unmanned land, sea, and air vehicles.
The Executive Yuan had proposed an 8-year, NT$1.25 trillion special defense ordinance. The version passed by the Legislative Yuan in its third reading on the 8th only allocated a budget cap of NT$780 billion and excluded commercial procurement and commissioned production projects.
In his 2nd anniversary of governance speech at the Presidential Office this morning, President Lai stated that the Legislative Yuan's failure to fully pass the ordinance will inevitably have a serious impact on the current state of peace and stability in the Taiwan Strait. The government will take remedial action by proposing another special ordinance, and through supplementary and increased annual budgets, will pursue commercial procurement, commissioned projects, international cooperation, and promote a self-reliant defense industry to produce unmanned vehicles and build intelligent, sustainable defense capabilities.
President Lai said, "Taiwan must become a country with the strength to protect itself and maintain peace and stability in the Taiwan Strait." He added that this is not only his promise to the people of Taiwan but also a determination that Taiwan should show to the international community.
The Executive Yuan had proposed an 8-year, NT$1.25 trillion special defense ordinance. The version passed by the Legislative Yuan in its third reading on the 8th only allocated a budget cap of NT$780 billion and excluded commercial procurement and commissioned production projects.
In his 2nd anniversary of governance speech at the Presidential Office this morning, President Lai stated that the Legislative Yuan's failure to fully pass the ordinance will inevitably have a serious impact on the current state of peace and stability in the Taiwan Strait. The government will take remedial action by proposing another special ordinance, and through supplementary and increased annual budgets, will pursue commercial procurement, commissioned projects, international cooperation, and promote a self-reliant defense industry to produce unmanned vehicles and build intelligent, sustainable defense capabilities.
President Lai said, "Taiwan must become a country with the strength to protect itself and maintain peace and stability in the Taiwan Strait." He added that this is not only his promise to the people of Taiwan but also a determination that Taiwan should show to the international community.