Thursday, May 22, 2025

Cabinet budget cuts threaten electricity supply

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Cabinet budget cuts in Taiwan have triggered concerns about maintaining electricity services as early as May. Officials warned that severe reductions passed by the legislature in January may soon impact basic operations.

A Cabinet official revealed on Friday that staff have already started reducing electricity usage. They also cut back on general expenses to stay within the new financial limits. The Cabinet only has NT$330 million (US$10.14 million) available for annual operating costs. These costs include utilities, travel, communications, and temporary staffing.

In January, lawmakers reduced the Cabinet’s budget by NT$150 million. Moreover, they froze 70 percent of the remaining funds. The Cabinet can only access the frozen portion after spending the initial 30 percent and receiving approval from the legislature.

Because of these Cabinet budget cuts, officials have canceled all newspaper and cable television subscriptions. They also removed paper towels from restrooms and coffee machines from certain offices. In addition, library hours were reduced, and future plans include limiting the hours of air conditioning usage.

The official emphasized that every ministry must now manage resources more carefully. They added that Premier Cho Jung-tai has urged ministries to act quickly. Each ministry must apply to unfreeze its budget share in less than a month. The Premier stressed that this process must move faster to prevent further disruption.

Despite the urgency, the Cabinet remains hopeful that the legislature will approve the requests soon. They believe the frozen funds are essential for running key government functions, especially utilities like electricity.

However, the challenges caused by Cabinet budget cuts continue to grow. Government employees now face increased restrictions at work. Offices must operate with fewer basic amenities. Essential services might suffer more delays if the funding stays frozen.

This situation has created frustration within the Cabinet, as leaders scramble to balance limited resources. Until the legislature responds, staff must keep cutting costs and prioritizing only essential expenses. The full impact of these cuts may become clearer in the coming weeks.

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