TAIPEI (Taiwan News) — Taiwan’s ruling and opposition parties have agreed on measures to end a budget impasse, allowing the Cabinet’s 2026 central government budget to be sent to committee review after Premier Cho Jung-tai (卓榮泰) addresses lawmakers and answers questions.
The agreement was reached following negotiations convened by Legislative Speaker Han Kuo-yu (韓國瑜), who said the Cabinet must adhere to the rule of law and implement bills passed in a third reading, per CNA.
The budget deadlock stems from the Cabinet’s omission of funding for military pay increases and higher income replacement rates for retired police officers and firefighters, measures previously approved by the legislature. Opposition parties argued the Cabinet is constitutionally obligated to allocate the funds.
Cho said the omissions were due to concerns over fairness among different categories of civil servants. He plans to request a constitutional interpretation when submitting the budget and adjust allocations based on the court’s ruling, with retroactive disbursements possible.
Under the agreement, Cho is expected to deliver a report on the central government budget, including its preparation and policy rationale, before the proposal is referred to committee. As of Saturday afternoon, however, Cho had not confirmed his attendance at the session tentatively scheduled for Tuesday.
The deal also requires the Cabinet to promptly implement NT$71.8 billion (US$2.28 billion) in funding for new initiatives included in the NT$3.3 trillion budget approved by the opposition-controlled legislature, even before the full budget clears the legislative process, per CNA.
In addition, the Cabinet is required to submit related bills within six months of the start of the review to address pay raises for active-duty military personnel and pension increases for retired police officers and firefighters. However, this condition is not directly tied to passage of the 2026 budget and lacks an enforcement mechanism.
The Cabinet’s refusal to include the disputed funding has led opposition parties to block budget review proceedings. It has instead sought a constitutional interpretation and injunction.
The situation is further complicated by uncertainty surrounding the Constitutional Court, which has been unable to function fully due to seven of its 15 seats remaining vacant since November 2024, as well as ongoing legal disputes over quorum requirements.
Cho said relevant agencies have been instructed to continue communicating with lawmakers to seek a feasible solution, particularly regarding reforms to the police personnel system. The compromise is expected to pave the way for the stalled budget review to move forward.
However, the issue of the defense budget still needs further negotiation, the Liberty Times reported. The Ministry of National Defense will present a report to the legislative Foreign Affairs and National Defense Committee next week before a new round of talks between the caucuses.
