No countersignature has emerged as the centerpiece of an unprecedented constitutional confrontation between Taiwan’s executive and legislative branches. The Presidential Office and the Executive Yuan decided not to countersign or promulgate amendments to a government revenue allocation law, marking a historic first for Taiwan’s governance system.
President William Lai and Premier Cho Jung-tai jointly endorsed the no countersignature approach following weeks of escalating political tension. Consequently, Lai plans to address the public, while Cho will hold a separate news conference explaining the Cabinet’s reasoning. Together, their actions signal a coordinated executive response to legislation they consider fiscally and constitutionally unsustainable.
The disputed amendments revise the Act Governing the Allocation of Government Revenues and Expenditures, which lawmakers passed on Nov. 14. Under the changes, local governments would receive a significantly larger share of annual central government revenues. Moreover, the amendments mandate minimum project-based subsidies for local administrations nationwide.
However, the Executive Yuan argued that implementation would immediately strain public finances and breach statutory debt limits. Officials estimated the changes would increase central government expenditures by approximately NT$264.6 billion annually. As a result, the 2026 budget would require additional borrowing exceeding the legally permitted debt ceiling.
Previously, the Cabinet formally requested the Legislative Yuan to reconsider the amendments. Nevertheless, opposition lawmakers rejected the request by a 59-50 vote, choosing instead to uphold the original version. In response, Cho publicly questioned the procedural integrity of the legislative review process.
Opposition leaders accused the administration of resisting decentralization and clinging to fiscal authority at the central level. They claimed the executive feared losing control over revenue distribution rather than protecting financial stability. Still, the Cabinet maintained that fiscal sustainability remains its primary responsibility.
Following the failed reconsideration vote, Cho stated he faced no obligation to enforce legislation containing procedural flaws. Shortly afterward, Democratic Progressive Party lawmakers convened under Lai’s leadership to discuss countermeasures. All 51 DPP legislators pledged full support for the executive’s response.
DPP caucus officials confirmed that the paralysis of the Constitutional Court influenced the decision to pursue no countersignature. Without judicial mediation, the executive opted to block promulgation as the only remaining safeguard. Consequently, the president cannot legally enact the bill.
Lai warned that the amendments, alongside opposition efforts to block a NT$1.25 trillion defense budget, threaten national security and fiscal sustainability. He emphasized that social stability and civil rights could also suffer under unchecked legislative actions.
Meanwhile, similar resistance may extend to newly passed pension laws affecting civil servants and public school employees. Sources indicated the executive also plans to apply no countersignature to those measures, arguing pension reform cannot reverse without severe consequences.
Looking ahead, Lai invited Legislative Speaker Han Kuo-yu to urgent talks aimed at defusing the crisis. However, Han declined the invitation, leaving the political standoff unresolved.
As Taiwan enters uncharted constitutional territory, no countersignature now stands as both a legal barrier and a powerful political signal.
