Taiwan Premier decries ‘suicidal’ budget cuts, may ask Parliament to rethink

TAIPEI – Taiwan Premier Cho Jung-tai on Jan 23 decried what he said were "suicidal" budget cuts passed by the opposition-dominated Parliament this week, saying that he may ask lawmakers to review and vote again on the slashed spending that includes defence.

Although Mr Lai Ching-te won the presidential election in 2024, his Democratic Progressive Party (DPP) lost its majority in Parliament, giving the opposition legislative control that includes spending proposals.

The government said the cuts the opposition passed in Parliament on Jan 21 total NT$207.6 billion (S$8.6 billion), or 6.6 per cent of the proposed total budget, for central government spending in 2025.

The opposition had also frozen NT$160.7 billion, around 5.1 per cent of the proposed total and 10 times more than the past average, according to Taiwan's government.

"In the face of such indiscriminate attacks, we can't make suicidal cuts," Mr Cho told reporters, adding some agencies would need to trim or terminate services because their water and electricity spending were cut.

Mr Cho would not directly say whether he would send the budget back to lawmakers for them to reconsider, saying only that he will seek "administrative remedies" allowed by the Constitution.

The Kuomintang (KMT) said the cuts were aimed at waste and parts could be unfrozen if ministers presented reports to Parliament detailing why the money should be released.

Mr Cho said nearly NT$90 billion of the defence budget was frozen, adding that this could hurt things like sending personnel abroad for training and fuel for fighter jets.

"When can they be unfrozen, when Chinese planes are coming or when the Parliament reassembles? This is hurting our country endlessly," he said.

The KMT on Jan 23 published a series of social media posts accusing the DPP of spreading rumours and overseeing wasteful spending, and disputed government numbers about the budget.

"As the people's hard-earned taxpayers' money has fallen into the pockets of fat cats, the opposition party naturally cannot just sit back and watch, and it must strictly monitor the situation," it said.

Taiwan's tech-oriented economy has been booming thanks to demand for chips used in artificial intelligence applications, and is expected to have expanded more than 4 per cent in 2024.

Given that growth, tax receipts also grew.

"Spending must also increase in the service of people, to foster industry, and strengthen national defence," Mr Cho said. REUTERS