Taipei: The Executive Yuan has approved a special budget proposal allowing for additional funding of NT$410 billion (US$12.6 billion) to tackle economic and security challenges in Taiwan over the next two years. This funding is set to address issues such as the impact of U.S. tariff shocks and bolster national security.

According to Focus Taiwan, a support package of NT$88 billion was launched on April 21 to mitigate the adverse effects of U.S. tariffs on Taiwan's industrial and agricultural sectors. This initiative aimed to boost the local economy. The Cabinet had anticipated passing a special budget bill to finance the support plan, which has now materialized into the approved NT$410 billion proposal.

The newly adopted proposal will enable the Cabinet to allocate this substantial budget in addition to its annual general budgets until the end of 2027. Premier Cho Jung-tai announced at a news conference in Taipei that NT$100 billion would be allocated to Taiwan Power Co. (Taipower) to offset its financial losses. Taipower had faced significant deficits due to rising global oil prices and the government's decision not to increase household utility rates.

The budget proposal aims to stabilize consumer prices and protect Taiwanese industries from recent global economic shocks. It also includes an increased support package of NT$93 billion and NT$150 billion dedicated to enhancing Taiwan's security through Coast Guard operations, UAV infrastructure development, and improvements in information and communications systems.

The Cabinet has indicated that the special budget will primarily be funded through fiscal surpluses, with provisions for borrowing if necessary. The bill, titled the "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Circumstances," requires legislative approval. Post-approval, the Cabinet will need to present special budget plans to utilize the NT$410 billion effectively.