Defense News


The Ministry states today the 21st that budget regulation procedures are habitual, mainly due to the delay in bidding in weapons and equipment acquisition, contract fulfillment issues, key technology export limitations, and other factors causing uncertainty, leading to progress lagging behind (or ahead of time) and other variables. Therefore the final payment schedule would not always be adherent to the original payment schedule drawn up. If planning is not up to scratch this will lead to massive overpayments or contract violation compensations. Therefore budget regulation is carried out according to “Military budget execution and payment end-report regulations” which is based on “Budget Law and “Government organizational budget execution points”.

In recent years the cases “F16 A/B model performance improvement” in 2013, ”PAC-2 performance improvement and PAC-3 procurement” in 2014, and “S-70C antisubmarine helicopter performance improvement” in 2015 (see attachment) are all cases in which the budget has subsequently become insufficient due to the increase in the transactional requirements by the United States. The Ministry of Defense maintains an “administer-by-law” policy in carrying out budget regulation operations which has been habitual.

The ministry stresses that future proceedings will be decided at the 4th session of the 9th Legislative Yuan “Foreign and National Defense Committee” on October 23, 2017. Interservice investment budget adjustments will be directly reported to the Legislative Yuan and matters will be described in detail. Budget sheets will be delivered to the respective offices for further review and to hasten procedures.