The Legislative Yuan today passed the third reading of a special defense budget of NT$780 billion (US$24.82 billion), with a budget ceiling of NT$300 billion for the first round of US arms procurement and a cap of NT$480 billion for the second round.
The bill, which fell short of the NT$1.25 trillion requested by the Democratic Progressive Party (DPP) government, passed by a 59-0 margin with 48 abstentions in the 113-seat legislature.
The act states that it was formulated in response to enemy threats and urgent national defense needs, with the goal of acquiring weapons and equipment capable of safeguarding national security and enhancing asymmetric warfare capabilities.
Photo: Fang Pin-chao, Taipei Times
The act specifies that procurement items in the first round include M109A7 self-propelled howitzers, High Mobility Artillery Rocket Systems, anti-armor drone missile systems, Javelin anti-tank missiles and tube-launched, optically tracked, wire command link guided 2B anti-tank missiles.
The legislation also authorizes the purchase of additional weapons systems approved by the US government within a year of the act taking effect, including integrated soft-kill and hard-kill counter-drone systems, several anti-ballistic and air defense missiles, medium and low-altitude air defense systems, and the replenishment of anti-tank missile stockpiles.
Funding for the items is to be formally budgeted based on the actual costs listed in Letters of Offer and Acceptance once formal approval is granted by Washington.
Under the act, budget preparation would not be subject to restrictions stipulated in Article 23 of the Budget Act (預算法) and funds cannot be reallocated without approval by the Legislative Yuan.
The act stipulates that the combined borrowing of the central government under the general budget and special budgets during the implementation period cannot exceed 15 percent of the combined total annual expenditures under those budgets.
The special act and its associated special budgets would take effect upon promulgation and remain in force through the end of 2033, and the period could be extended with legislative approval if necessary.
The Ministry of National Defense, serving as the competent authority, would be required to conduct military procurement and related force-building projects in accordance with the Government Procurement Act (政府採購法) and other defense-related laws and regulations.
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