TAIPEI (Taiwan News) — The Ministry of Agriculture announced Tuesday that amendments to the Act Governing the Allocation of Government Revenues and Expenditures could lead to a NT$25 billion (US$766 million) impact, potentially suspending major operations.

The MOA stated the impact spans three major areas. It would affect programs such as African swine fever prevention, farmer subsidies for electricity and fertilizer, and public mudslide early warning systems, per CNA.

Cabinet Spokesperson Lee Hui-chih (李慧芝) said Monday that the Act Governing the Allocation of Government Revenues and Expenditures requires local governments to prioritize funding for social welfare, education, public security, water resources, and transportation, per CNA. Local governments should rely on their own financial resources for these areas, she said.

However, due to financial disparities, the central government has long supported counties and cities with fewer funds. This has been done through general subsidies, ministry-specific grants, and programs. These efforts aim to strengthen childcare, education, caregiving, and healthcare, among other social investments.

Lee noted that local governments have begun operating with surpluses in recent years. Short and long-term debts have also decreased.

She cited Premier Cho Jung-tai’s (卓榮泰) claim that the current allocation act is the most feasible for implementation. While there have been calls to amend the act, reaching consensus takes time, Lee said.

The government has held meetings with stakeholders, but the KMT pushed through amendments before an agreement was reached, Lee remarked.

The ministry’s 2025 budget is NT$169.254 billion, of which NT$90.7 billion is legally mandated and unalterable. After accounting for the mandated expenditure, the NT$25 billion cut is 32% of the remaining NT$78.5 billion.

Critical efforts to secure international pork market access, including swine disease prevention will be affected. These include African swine fever defenses, classical swine fever eradication programs, and related quarantine measures.

The suspension could halt cold chain logistics development aimed at upgrading the pork industry and expanding market reach. Farmers' welfare programs, such as occupational injury insurance, scholarships, and subsidies for fertilizer and electricity, are also at risk.

Disaster prevention initiatives, including debris flow monitoring and large-scale landslide early warning systems, could be severely curtailed due to the funding shortfall.