Kathmandu— Taiwan’s parliament approved the government's annual $93 billion budget late Friday, ending a period of political stalemate lasting over 266 days and ensuring continued funding for a key drone program designed to bolster the island’s defenses against China. The approval comes as President William Lai Ching-te’s administration navigates a parliamentary landscape where it lost its majority in 2024, leading to clashes with opposition parties regarding government spending priorities. Lawmakers ultimately passed the budget after concessions were made on several fronts, including reductions to allowances and military equipment.

Budget Impasse and Resolution

The passage of the budget followed a record delay, exceeding its legal deadline by over eight months, and prompted concerns about potential disruptions to government operations. Legislative Speaker Han Kuo-yu acknowledged the prolonged deadlock had created “social division and a constitutional impasse,” urging greater compromise between ruling and opposition parties in the future. Prior to Friday’s vote, the government was operating on a provisional budget to maintain essential services like civil servant salaries and welfare programs.

Drone Program Funding Secured

Despite initial threats from the Kuomintang, the main opposition party, to reduce funding for drone development by 70 percent, the program’s full allocation was ultimately preserved. The Kuomintang reversed its proposed cut after determining that concerns about overlap between development and procurement programs were unfounded. This decision underscores the perceived importance of unmanned aerial vehicles in Taiwan's defense strategy.

Budgetary Cuts Across Government Agencies

While drone funding remained intact, other areas of the budget faced reductions. Special allowances for government agency heads were cut by 60 percent, military equipment and facilities spending was reduced by 2.5 percent, and media policy and publicity budgets saw a 50 percent decrease. In May, the legislature had already slashed a proposed $40 billion special defense budget by 38 percent, primarily affecting domestically produced combat drones while leaving US arms purchases untouched.

The approved budget allows Taiwan to continue its drone development program as China continues to expand its own military capabilities and assert claims over the self-ruled island. The situation remains tense, with Beijing increasing military pressure on Taiwan in recent years.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.