Taipei: Taiwan's ruling Democratic Progressive Party (DPP) caucus on Friday expressed full support for any countermeasure the Cabinet might adopt in response to an opposition-backed amendment to a government revenue allocation law. The amendment, if enacted, would allocate more funds to local governments, a move the DPP opposes.

According to Focus Taiwan, the DPP caucus made its pledge after a meeting with President Lai Ching-te. This meeting followed the opposition Kuomintang (KMT) and Taiwan People's Party (TPP) rejecting a Cabinet motion on December 5. The motion sought legislative reconsideration of the amendment, which the opposition parties passed using their combined legislative majority.

All 51 DPP lawmakers attended the meeting with President Lai, as confirmed by DPP caucus Director-General Chung Chia-pin. Cabinet Secretary-General Xavier Chang was also present. The contentious amendment to the Act Governing the Allocation of Government Revenues and Expenditures proposes that local governments receive a larger share of central government revenue annually.

The Cabinet contends that implementing the amendment is unfeasible as it would necessitate the central government to increase borrowing for the 2026 general budget by NT$264.6 billion (US$8.47 billion), thereby exceeding the statutory debt ceiling. This issue, Chung noted, has stalled the review of the fiscal 2026 general budget in the Legislature.

Chung further explained that with the Constitutional Court currently incapacitated, President Lai has asked Premier Cho Jung-tai to consider not countersigning the amendment. Without this countersignature, the president would be unable to promulgate the legislation. DPP lawmakers unanimously agreed to support the president in collaborating with the premier to counter potentially unconstitutional laws passed by the opposition.

Wu Szu-yao, head of the DPP's Policy Committee, mentioned that options discussed included either not countersigning the measure or countersigning it but choosing not to execute it. Both options would remain within constitutional bounds, Wu assured, adding that the DPP caucus would fully back the Cabinet and work to inform the public about the issue.

Earlier on Friday in Tainan, President Lai told reporters that the amendment, along with the opposition's blockage of a NT$1.25 trillion special defense budget, jeopardized national security, social stability, fiscal sustainability, and civil rights. "Under these grim circumstances, it is incumbent upon me to meet with the DPP legislative caucus to discuss how to respond," Lai stated.

Following the opposition's rejection of the Cabinet's reconsideration motion, Premier Cho remarked that he was "under no pressure to execute" the amendment, citing procedural flaws in its review. This comment drew sharp criticism from the opposition, with the KMT caucus threatening to introduce a motion condemning the premier.

The Constitutional Court, which has been immobilized since January 2025 due to a legal revision, requires a minimum of 10 grand justices for deliberations and nine to approve an unconstitutional ruling. Previously, deliberations required two-thirds of sitting justices, with a simple majority to rule. In July, opposition lawmakers also vetoed all seven of President Lai's nominees to fill vacancies on the 15-seat Constitutional Court.