Taipei: Taiwan's government and the opposition-controlled Legislature continued to battle Monday over planned cuts to the Cabinet's 2025 budget proposal, ahead of an expected final vote on Tuesday. The budget proposal approved by the Cabinet last August set government spending for the fiscal year 2025 at NT$3.1325 trillion (US$95.57 billion) with projected revenues of NT$3.1534 trillion, resulting in a surplus of NT$20.9 billion.
According to Focus Taiwan, the Kuomintang (KMT) and the Taiwan People's Party (TPP) joined forces on Saturday to slash NT$93.98 billion, or around 3 percent, from the budget plan during a second reading of the budget bill in the Legislature. Despite these cuts, the central government would still experience a more than 6 percent increase in funding from the 2024 budget of NT$2.85 trillion.
The 2025 budget is scheduled for a third and final reading on Tuesday, marking the last day of the current legislative session. At a press conference on Monday, Premier Cho Jung-tai criticized the opposition's approach to the budget, warning that the proposed cuts, especially to ministries' travel and policy promotion budgets, would hinder government operations. Cho highlighted that the Cabinet had approved NT$3.1 trillion in government spending for 2025, an increase of NT$280.6 billion compared to the 2024 budget.
Cho attributed the higher spending to increased tax revenues and GDP growth, which have allowed the government to invest more in Taiwan's public infrastructure. The proposed spending hike included NT$79.8 billion for public infrastructure, NT$41.5 billion for national defense, and NT$33.6 billion to stabilize the national health insurance system's finances.
Cho alleged that the KMT and TPP had predetermined a 3 percent budget cut and criticized plans to reduce budgets for the Mainland Affairs Council, Ministry of Digital Affairs, and National Communications Commission to NT$1. He questioned if this move was an attempt to "paralyze the country."
Despite these concerns, the Legislature approved smaller spending reductions than anticipated, cutting NT$130 million and freezing almost NT$100 million from the MAC's original proposed budget of NT$1.039 billion.
In response, Lin Szu-ming, secretary-general of the KMT's legislative caucus, stated that lawmakers must control inflated budgets and wasteful spending. TPP legislative caucus convener Huang Kuo-chang remarked that if Premier Cho cannot govern with NT$2.9 trillion in funding, he should step down.
Even as tensions continue, the KMT and TPP advanced additional spending freezes on Monday. The parties passed a measure freezing NT$500 million in funding for the Executive Yuan until a report and apology were issued to the Legislature's Internal Administration Committee. They also voted to freeze 70 percent of the Cabinet's operating expenses, with the requirement that the Cabinet submit a request to access these funds after spending the first 30 percent.
The 2025 government budget, along with the proposed spending cuts and freezes, is anticipated to pass a final reading on Tuesday. The KMT and TPP control 54 seats and eight seats, respectively, in Taiwan's 113-seat Legislative Yuan, while the ruling Democratic Progressive Party holds 51 seats.