What Happened
Island Nation Ends Fiscal Impasse Amid Divided Government
Taiwan’s legislature has approved the island’s 2026 government budget after a record 266-day delay, ending an extraordinary political impasse that forced the administration to rely on provisional spending arrangements for months. The approved budget includes a total expenditure of approximately NT$2.987 trillion, equivalent to about $93 billion, with a significant allocation for drone development and procurement. The delay was caused by a divided government, with the executive branch and the opposition-controlled legislature disagreeing on spending priorities. The final agreement required significant compromises, with some government expenditures reduced sharply, while strategically important funding, particularly for drone development, survived intact. This development was first reported by News.az.