Taipei: 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 emphasized the economic impact of budgetary changes, noting that every NT$10 billion (US$318.02 million) alteration in government operating and equipment expenses affects GDP growth by 0.05 percent. The items respectively pertain to government consumption and investment, a DGBAS officer explained after the meeting.
According to Focus Taiwan, the 2026 budget proposal includes NT$299.2 billion in funding for new projects and funding increases for various government functions, which cannot be utilized until it receives approval from the Legislative Yuan. The proposed budget encompasses NT$101.7 billion for new projects, with NT$10.2 billion allocated to the “Ten Major AI Infrastructure Projects,” covering key technologies such as unmanned vehicles, smart robots, silicon photonics, and quantum technology. The DGBAS warned that failure to approve the budget would impede companies and public services in implementing AI applications and delay key technology projects and plans.
Other projects at risk include NT$7.5 billion for the TPass initiative, aimed at promoting public transportation, which could affect about 982,000 commuters monthly if not approved; NT$6 billion for the New Materials Circular Economy Industry Park development project; and NT$4.1 billion in subsidies for maternity allowances. Additionally, if the 2026 budget for recurring expenditures and ongoing projects surpasses 2025 levels and remains unapproved, spending will be capped at the 2025 total, the DGBAS stated.
Calculations indicated a total of NT$180.5 billion in increased expenditures for each government function in the 2026 budget, with policy plan implementations facing potential disruptions if the budget is constrained. For instance, the agency highlighted that the additional NT$14.8 billion allocated to the Ministry of Economic Affairs would bolster research and development in advanced semiconductors and next-generation communications, sustain industry innovation subsidies, and attract global companies to establish research and development centers in Taiwan.
The DGBAS also noted that the additional NT$10.8 billion designated for the Ministry of Foreign Affairs would facilitate the timely execution of cooperative projects with allies and global partners, as well as expand multilateral diplomacy linked to Taiwan’s competitive industries.
