TAIPEI (Taiwan News) — Lawmakers passed the central government budget on Tuesday with around NT$207.5 billion (US$6.34 billion) less spending than the Cabinet originally planned, ending months of political wrangling between the ruling and opposition parties.
The Cabinet and opposition legislators agreed on a budget proposal in November that outlined NT$3.1325 trillion in funds for the coming fiscal year. As the budget entered its third reading in the legislature, KMT and TPP legislators submitted over 3,000 proposals to reduce spending on utilities, defense, public relations budgets, and other areas.
After days of voting, legislators passed the general budget bill setting out an annual expenditure of NT$2.9248 billion, per CNA. Legislators voted on bills from Monday morning to around 5 a.m. on Tuesday, approving cuts mostly proposed by the KMT.
The general budget bill was passed with the following cuts and freezes:
- NT$100 billion less for the state-owned electricity utility Taipower
- Half of the NT$2 billion (US$61 million) budget for Taiwan’s domestic submarine construction program frozen
- Half of the foreign ministry’s operating expenses frozen
- The Control Yuan’s operating expenses reduced by half
- NT$23 million less for the state-owned Public Television Service
- Budgets for military equipment and facilities reduced by 3%
- Most media budgets for government ministries and departments cut by 60% (targeting NT$93.975 less spending)
- Reduced or frozen budgets for the education ministry, culture ministry, and the National Human Rights Museum

After the budget was passed, the KMT said on Facebook that the DPP wasted tax dollars. It accused the DPP of favoring specific groups and ideologies when allocating funds.
The DPP called the budget cuts unreasonable and said they would greatly impact the government. “The budget has been cut crudely without logic, only paying attention to political disputes and not people's livelihood,” the party wrote in a Facebook post.
Premier Cho Jung-tai (卓榮泰) held multiple press conferences as proposals for budget cuts emerged urging lawmakers to reconsider. In a last-ditch effort on Tuesday, Cho said the opposition’s cuts indicated it was trying to influence government operations.
While visiting an Air Force base in Taitung on Tuesday, President Lai Ching-te (賴清德) said he hoped the government and opposition would unite to support the national defense budget. Lai said the international community hopes to see Taiwan demonstrate its resolve, and both ruling and opposition parties should support national defense.

The heads of other government ministries and agencies also spoke against the cuts. On Tuesday, foreign ministry spokesperson Hsiao Kuang-wei (蕭光偉) said the cuts would seriously affect the promotion of diplomatic work and put Taiwan at a disadvantage internationally.
Meanwhile, Taipower said on Monday the cut to its budget may affect electricity prices. The canceled NT$100 billion subsidy was designed to ease financial pressure on the utility after it raked up NT$420 billion in losses by the end of last year.
The economic ministry also issued a statement shortly before the cut was confirmed saying the proposal would have “major impacts” on the public. In addition to the concerns expressed by Taipower, the ministry said the cut could also affect Taiwan’s global competitiveness.
