Taiwan's Executive Yuan Unveils Massive NT$410 Billion Special Budget Plan

Boosting Economic Resilience and National Security in Response to Global Challenges

Taipei, Taiwan - In a significant move to bolster its economic stability and national security, Taiwan's Executive Yuan has approved a special budget proposal amounting to NT$410 billion (US$12.6 billion) over the next two years, a substantial increase from the previously announced NT$88 billion support package.

This strategic financial initiative, approved on Thursday, aims to provide crucial support to several key sectors of the Taiwanese economy and address pressing national needs. The funding will be allocated in addition to the government's regular annual budgets, extending through the end of 2027.

The original NT$88 billion support package, launched on April 21, was designed to mitigate the impact of U.S. tariffs on Taiwan's industrial and agricultural sectors and stimulate local economic growth.

Premier Cho Jung-tai (卓榮泰) announced that a significant portion of the new budget, NT$100 billion, will be dedicated to Taiwan Power Co. (Taipower) to address its accumulated financial losses. Taipower has faced substantial deficits, reaching NT$420 billion by the end of 2024, due to rising global oil prices and the government's reluctance to increase household utility rates.

Premier Cho emphasized that this additional funding aims to stabilize consumer prices, protecting both Taiwanese industries and the broader economy from the effects of recent global economic instability.

The NT$410 billion proposal also encompasses the government's support package, which has been increased to NT$93 billion. Furthermore, NT$150 billion will be earmarked for enhancing Taiwan's national security, as stated by Premier Cho.

According to Cabinet spokesperson Michelle Lee (李慧芝), the security-focused funds will be utilized to strengthen Coast Guard operations, develop unmanned aerial vehicle (UAV) infrastructure, and upgrade information and communications systems and facilities.

The special budget will be primarily funded through fiscal surpluses, with provisions for borrowing if necessary. The "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Circumstances" (因應國際情勢強化經濟社會及國土安全韌性特別條例) requires legislative approval before the funds can be utilized. The Legislature will then need to approve specific budget plans for the allocation of the NT$410 billion.