President Lai Ching-te emphasized that Taiwan stands strong and resolute in bolstering self-defense and safeguarding regional peace.
Lai made the remarks in a post on his official X account Aug. 21 following the Executive Yuan’s announcement of the proposed budget for fiscal year 2026.
Premier Cho Jung-tai held a news conference the same day to brief citizens on the spending plan.
The premier emphasized that 3.32 percent of the gross domestic product, or NT$949.5 billion (US$30.96 billion), is allocated to national defense to demonstrate to the world Taiwan’s capacity and determination to preserve its sovereignty, adding that expenditure for diplomatic affairs is increased to NT$41.5 billion.
Cho detailed how the budget will benefit citizens, including targeted tax exemptions. Young unmarried renters whose yearly income is under NT$626,000 (US$20,417) and four-person households whose annual income is under NT$1,614,000 will be exempt from income tax, he said.
To fulfill President Lai Ching-te’s Healthy Taiwan vision, NT$5 billion is earmarked for new cancer drugs and NT$115.3 billion is allotted for long-term care, the premier said.
Additionally, in response to U.S. tariffs, the government will roll out measures to stimulate domestic demand, such as subsidies for weekday travel; concert and exhibition promotions; and locally staged international sports events, Cho said, adding that NT$7.5 billion is reserved for this purpose.
A total of NT$31.1 billion will support the development of the artificial intelligence sector, while NT$10.9 billion is earmarked for revitalizing micro-, small- and medium-sized enterprises to accelerate their digital and net-zero transitions and help forge a smart country, the premier added.
Cho concluded by encouraging government agencies to be more proactive and innovative amid AI challenges, geopolitical risks, fluctuations in the global economy and politics, and the restructuring of supply chains to ensure a prosperous and sustainable Taiwan. (POC-E)
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