The Cabinet and the opposition remain locked in a fierce battle over Taiwan’s budget allocation deadlock. Cabinet Spokesperson Li Hui-chih explained that officials had warned the opposition about flaws in its amendment. However, she emphasized that lawmakers chose to ignore these warnings.
The Ministry of Finance later revealed that the amendment blocked NT$34.5 billion from distribution. In particular, Li highlighted three serious concerns. First, she said the allocation formula unfairly shifted resources. Second, she warned that the amendment blurred responsibilities between central and local governments. Finally, she argued that it could worsen rural and urban inequality.
As a result, Li stressed that the budget allocation deadlock arose directly from the opposition’s amendment. Moreover, she announced that the Cabinet would soon invite all 22 mayors and magistrates. The meeting will aim to find solutions and reduce political tension.
Premier Cho Jung-tai backed Li’s position and criticized lawmakers for rejecting the Cabinet’s reconsideration request. Meanwhile, President Lai Ching-te warned that reduced central revenue limited disaster response capacity. He cited natural disasters as a clear example. Furthermore, Lai insisted that the ruling party did not create the deadlock.
KMT Chair Eric Chu admitted that the formula contained flaws. Nevertheless, he argued that the Ministry of Finance still had the responsibility to distribute the NT$34.5 billion. In addition, Chu pressed the government not to replace general grants with program-based grants. He warned that lengthy applications would slow down local governance.
The amendment also created technical issues in the distribution process. Normally, Taiwan’s 19 main municipalities and three island municipalities use separate formulas. Yet, the amendment combined all 22 municipalities into one denominator. Consequently, the government could not properly allocate the full amount.
Later, fifteen opposition-aligned leaders released a joint statement. They urged the central government to respect the spirit of the amendment. Furthermore, they asked officials to protect current allocations and avoid converting grants.
Ultimately, the clash has deepened Taiwan’s budget allocation deadlock. Without compromise, both sides risk prolonging uncertainty for municipalities nationwide.
