TAIPEI (Taiwan News) — Taiwan’s budget next year remains unapproved as the Cabinet seeks clarification on military and police pay raises, CNA reported.
The Cabinet approved the budget summary on Aug. 21, setting revenues at NT$2.86 trillion (US$98.1 billion). This is down NT$302.5 billion from last year due to the Act Governing the Allocation of Government Revenues and Expenditures transferring funds to local governments.
Total expenditures are NT$3.04 trillion, including NT$831.8 billion for social welfare, NT$556.6 billion for education, science and culture, NT$548.8 billion for national defense, and NT$427.5 billion for economic development.
Under Article 51 of the Budget Act, the Legislative Yuan must pass the budget at least one month before the fiscal year begins. The president promulgates it 15 days before the start of the fiscal year.
In practice, only four budgets since 2001 have been completed on time, most recently the 2024 budget on Dec. 19. Classified portions of the budget are not publicly disclosed.
Delays are not unprecedented. The most delayed recent budget was in 2007, when legislative deadlock over the Election Commission Act pushed approval to June 15. Analysts say delays often stem from political disputes or procedural issues.
For the 2026 budget, KMT and TPP lawmakers argue the Cabinet failed to properly include funding tied to the Pay Act of the Armed Forces and Police Personnel Management Act. They called the omission illegal and pushed for resubmission, prompting an extension of the legislative session to late January.
The Cabinet said the disputed items involve fairness among civil servants and possible constitutional concerns. It has requested a constitutional interpretation and said back pay would be issued if the ruling allows.
New capital spending worth more than NT$200 billion is currently frozen. Affected items include commuter passes, flood-control projects, birth-rate measures, and AI infrastructure initiatives.
Health programs covering smart healthcare, drug preparedness, and vaccine resilience are also on hold, alongside funding for major sports events. Education projects, including new high schools and sewage upgrades, remain stalled as well.
Spending unrelated to new projects will continue under previous allocations. This includes personnel costs, subsidiary unit budgets, and authorized borrowing.
Officials say the delay highlights structural tensions between the Cabinet and Legislative branches. With the session extended, approval is now expected in the first quarter.
