DGBAS urges Legislature to approve annual budget

Taipei, Dec. 24 (CNA) Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS) on Wednesday urged the Legislative Yuan to promptly approve the 2026 budget, warning that prolonged legislative delays could harm the economy.

While reporting to the Legislative Yuan's finance committee, DGBAS Minister Chen Shu-tzu (陳淑姿) said that every NT$10 billion (US$318.02 million) change in government operating and equipment expenses affects GDP growth by 0.05 percent.

The items respectively concern government consumption and investment, a DGBAS officer explained after the meeting.

According to the DGBAS report, the 2026 budget proposal contains NT$299.2 billion in funding for new projects and funding increases for various government functions, which cannot be used until it is approved by the Legislative Yuan.

This includes NT$101.7 billion for new projects, including NT$10.2 billion allocated to the "Ten Major AI Infrastructure Projects," which covers key technologies such as unmanned vehicles, smart robots, silicon photonics and quantum technology.

If the budget is not approved, the momentum of companies and public services in introducing AI applications will be affected while key technology projects and plans would be delayed, the DGBAS said.

Other affected projects include NT$7.5 billion for the TPass initiative, which promotes public transportation and, if not approved, will impact about 982,000 commuters each month; NT$6 billion for the New Materials Circular Economy Industry Park development project; and NT$4.1 billion in subsidies for maternity allowances.

Apart from new projects, if the 2026 budget for recurring expenditures and ongoing projects exceeds 2025 levels and is not approved, spending will be capped at the 2025 total, the DGBAS said.

Calculations showed a total of NT$180.5 billion in increased expenditures for each government function in the 2026 budget, and policy plan implementations will be affected if the budget is limited.

For example, the agency said the additional NT$14.8 billion allocated to the Ministry of Economic Affairs would support research and development in advanced semiconductors and next-generation communications, help sustain industry innovation subsidies and attract global companies to establish research and development centers in Taiwan.

The DGBAS added that the additional NT$10.8 billion allocated to the Ministry of Foreign Affairs would help ensure the timely implementation of cooperative projects with allies and global partners, as well as expand multilateral diplomacy linked to Taiwan's competitive industries.