Taiwan President appeals for harmony amid budget stand-off

TAIPEI – Taiwanese President Lai Ching-te appealed on Jan 27 in his Chinese New Year message for harmony between the ruling and opposition parties, amid a stand-off over the opposition slashing the 2024 budget.

While

Mr Lai won the presidential election in 2024

, his Democratic Progressive Party lost its majority in Parliament, giving the opposition legislative control that includes spending proposals.

Last week the opposition, citing a need to cut waste, passed spending cuts the government says amount to NT$207.6 billion (S$8.51 billion) or 6.6 per cent of the proposed total budget, for central government spending in 2025.

The government is considering asking Parliament to reconsider the budget, which includes defence spending, though the opposition has not shown signs of backing down.

This could presage conflict with the new US administration of US President Donald Trump, which is required by law to provide Taiwan with the means to defend itself.

In his message, carried on social media, Mr Lai did not directly mention the budget or other disputes with the opposition.

In his message ahead of the Chinese New Year, which starts on Jan 29, Mr Lai said harmony was needed, though he did not directly mention the budget or other disputes with the opposition.

“There is a saying that in a harmonious family, all things prosper,” he said. “The same goes for our nation. I look forward to the ruling and opposition parties being in harmony and our society uniting.”

Taiwan enjoyed strong support from the first Trump administration, including regularising arms sales that continued under the Biden administration. But Mr Trump unnerved Taiwan on the campaign trail by calling for it to pay to be defended.

Mr Elbridge Colby, Trump’s nominee as Under Secretary of Defence for policy, has explicitly urged Taiwan to spend much more on defence to counter the threat posed by China, which considers the democratically ruled island part of its territory and last year staged two major military exercises nearby.

The US State Department nevertheless gave a reserved response at the weekend to the budget row.

“We defer to the relevant Taiwan authorities regarding Taiwan’s budget decisions,” a spokesperson said.

“Our priority remains peace and stability across the Taiwan Strait, which is important to US national security and economic prosperity. We remain committed, consistent with the Taiwan Relations Act, to providing arms and training to enable a sufficient self-defense capability.”

Mr Lai, whom Beijing denounces as a “separatist”, did not extend New Year greetings to China. REUTERS