Defense minister says Cabinet bill more comprehensive than opposition

Taipei, March 23 (CNA) Defense Minister Wellington Koo (顧立雄) said Monday that a government-proposed NT$1.25 trillion (US$39.6 billion) special defense budget is the most comprehensive among competing proposals, as it supports long-term domestic weapons production.

Speaking during a legislative session in which lawmakers debated bills proposed by the Cabinet, the main opposition Kuomintang (KMT), and the smaller Taiwan People's Party (TPP), Koo reiterated that the NT$1.25 trillion proposal put forward by the ruling Democratic Progressive Party (DPP) government is the "most comprehensive" and urged lawmakers to pass it.

According to Koo, one major difference between the DPP's version and those proposed by the KMT and TPP is that, instead of only financing U.S.-made weapon systems already approved by Washington, the Cabinet's bill also covers systems to be produced locally -- in particular, 200,000 unmanned aerial vehicles and more than 1,000 unmanned surface vehicles.

Both the KMT and TPP have criticized the Cabinet's proposal for including these domestic production programs in a special budget spanning eight years from 2026 to 2033, labeling it fiscally irresponsible and arguing for funding them through the annual general budget.

However, Koo said that acquiring drones through the annual general defense budget would only meet the military's needs on a year-to-year basis and would not support the long-term development of local drone makers.

Taiwan's defense requires more than just 200,000 drones, he added.

By introducing a long-term, multi-year special defense budget, the government would give local drone manufacturers greater incentive to establish production lines in Taiwan and encourage more companies to invest in the sector, Koo said.

In the long run, this approach could help Taiwan build its own "non-red" supply chain, particularly as China dominates the global drone market, he added.

Koo made the remarks during a joint session organized by the Legislature's Foreign Affairs and National Defense Committee and the Finance Committee to review the three bills.

Since being sent to the Legislature for review late last year, the Cabinet's bill has been repeatedly blocked, with TPP and KMT lawmakers preventing it from being referred to committee before the end of the previous legislative session on Jan. 31, citing a lack of transparency.

The TPP and KMT later proposed their own special defense budget plans, with the KMT suggesting NT$380 billion and the TPP capping its proposal at NT$400 billion.

Both figures represent significant reductions from the Cabinet's NT$1.25 trillion draft, which seeks to fund not only the eight U.S. weapons systems already approved for sale, but also potential future U.S. arms sales, as well as the procurement of drones and T-Dome multilayered air defense systems from domestic manufacturers.

Monday's session focused on questioning defense officials about the proposed measures, while clause-by-clause reviews of each bill are scheduled for Wednesday and Thursday, according to the Legislature's agenda.