Taiwan lawmakers have reached a deal to end a six month budget review impasse that has paralyzed fiscal planning. The Chinese Nationalist Party, Taiwan People’s Party and ruling Democratic Progressive Party agreed on Wednesday. They will send the Cabinet’s budget proposal to committee review. Premier Cho Jung-tai must first brief lawmakers on the plan. He also needs to respond to their questions during the session.
The budget review impasse began after opposition lawmakers passed legislation last year. That legislation directed the Cabinet to fund military pay raises. It also required increasing pensions for retired police officers and firefighters. However, Premier Cho has declined to earmark funding for these measures. He cited constitutional concerns as his primary reason for refusing.
The Cabinet has requested a constitutional interpretation on both cases. It also sought an injunction to block enforcement of the legislation. Consequently, opposition parties blocked the budget review entirely. The Constitutional Court remains in limbo due to several factors. The government has failed to fill seven of the court’s 15 seats. Those seats have remained vacant since November 2024. Legal wrangling over quorum requirements has further delayed proceedings.
The new agreement requires the Cabinet to implement a NT$71.8 billion portion of the budget. That amounts to approximately US$2.28 billion from the NT$3.3 trillion total. Opposition lawmakers had previously approved this funding for new initiatives. The disbursement must occur before the general budget clears the legislative floor. This condition aims to unlock critical spending without further delays.
Additionally, the agreement requires the Cabinet to submit specific bills within six months. Those bills must provide a pay raise for active duty military personnel. They must also increase the income replacement ratio for retired police officers and firefighters. However, this condition does not tie directly to the budget review impasse resolution. There is also no enforcement mechanism to force Cabinet compliance.
Premier Cho had previously offered retroactive raises if the court rules the bills constitutional. Opposition lawmakers rejected that position as insufficient. Cabinet spokesperson Michelle Lee quoted Cho on Thursday. He said the Ministry of National Defense should conduct a more comprehensive review. That review should examine military pay, allowances and welfare measures. The ministry must identify shortcomings and submit proposals to the Cabinet.
Regarding police personnel, Cho has instructed relevant agencies to continue communicating. They must negotiate with the legislature to find a reasonable solution. As of yesterday afternoon, Cho had not confirmed his appearance. The briefing has been tentatively scheduled for Tuesday. The budget review impasse may finally end if Cho agrees to attend. Lawmakers across party lines have signaled their readiness to proceed.
