TAIPEI (Taiwan News) — Transportation officials told the Legislative Yuan on Thursday that MRT and Taiwan Railways Corporation projects will face major funding cuts in the 2026 budget due to reduced central revenues following KMT-backed fiscal amendments.
Minister of Transportation and Communications Chen Shih-kai (陳世凱) said amendments to the Act Governing the Allocation of Government Revenues and Expenditures increased the share allotted to local governments while reducing central funds, per Liberty Times. He said this has weakened the central government’s capacity to subsidize local projects.
The ministry initially requested NT$39.9 billion (US$1.3 billion) in central subsidies for MRT projects in the six municipalities and Keelung next year. After the amendments, the Cabinet approved only NT$9.05 billion — a shortfall of NT$30.85 billion, a 77.3% reduction.
Next year’s TRC rail construction budget was originally NT$21.25 billion but was cut by NT$6.71 billion. Funding to enhance track structure safety and for train maintenance will face a combined shortfall of NT$2.95 billion.
TRC’s larger construction projects were budgeted at NT$50.06 billion but received NT$20 billion less. The Hualien–Taitung dual-track electrification and the Taoyuan urban railway undergrounding saw combined cuts of NT$16.9 billion.
KMT Legislator Lu Ming-che (魯明哲) criticized the ministry’s handling of the cuts, saying major infrastructure requires years of reviews and approvals. He asked whether the reduced funds were delayed or permanently canceled and raised concerns about contract management.
Chen said the ministry’s ability to support local governments has diminished since the revisions. He said a new subsidy mechanism will be developed, but ongoing reviews will continue so projects are not delayed. Future subsidies will depend on the central government’s annual fiscal situation, he added.
Railway Bureau Director-General Yang Cheng-chun (楊正君) said cooperation with contractors will proceed as scheduled, with funding distributed over multiple years. TRC said the track safety and vehicle maintenance projects are multi-year plans and will be adjusted based on progress, with any shortfalls addressed in future budgets.
The ministry said MRT funding requests must now be adjusted to actual local needs. It is drafting principles to factor in local fiscal conditions and each metro system’s development level. It added that MRT development is a local responsibility and central subsidies are discretionary.
Given the cross-regional benefits of metro systems, the ministry said central funding will still be provided as appropriate. With local tax-allocation shares now significantly higher, local governments should prioritize public needs and adequately fund MRT and rail projects.
