TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) warned that the Middle East conflict is heightening economic risk, making immediate approval of Taiwan’s stalled NT$3.03 trillion (US$96 billion) 2026 central government general budget essential for stability.

Per CNA, Cho highlighted surging oil prices from the war as a threat to growth and inflation, urging lawmakers to prioritize national needs over partisan disputes. The premier noted that prolonged delays block defense procurement and policy execution that are critical in uncertain times.

Speaking at a Cabinet meeting on Thursday, Cho reiterated that the Middle East situation requires flexible budgeting to address domestic and global shocks.

Cho called for rational dialogue and warned that a budget shortfall could cripple government operations, CNA reported. He also asked legislators to grant broader fiscal capacity for central and local governments to meet public responsibilities.

The Cabinet submitted Taiwan’s general budget proposal to the Legislative Yuan at the end of August 2025. The opposition KMT and TPP have repeatedly sidelined the budget, demanding adjustments for military pay raises and revenue-sharing changes.

The government has also proposed a special defense budget separate from the regular NT$3 trillion general budget. It is also stalled in the legislature due to opposition demands for transparency.