Premier Cho Jung-tai said yesterday the Cabinet would not countersign disputed fiscal amendments, stressing the move centers on defending constitution. He framed the decision as a necessary response to protect Taiwan’s constitutional balance and executive authority.
The Legislative Yuan passed the amendments on December 5, expanding annual revenue transfers from the central government to local administrations. However, Cho warned that the changes would severely strain central finances and destabilize long-term budget planning.
According to Cabinet estimates, the revisions would force the government to borrow an additional NT$264.6 billion next year. Consequently, that amount would exceed the statutory borrowing ceiling of 15 percent of total government expenditure.
Earlier, the Executive Yuan requested legislative reconsideration of the bill, citing fiscal sustainability and governance concerns. Nevertheless, opposition lawmakers rejected the request by a narrow 59-50 vote.
Cho argued that opposition parties advanced the bill without meaningful consultation or adequate constitutional review. Therefore, he said the Cabinet’s refusal represents the final institutional safeguard available to the executive branch.
Moreover, Cho accused the legislature of expanding its authority in ways that undermine constitutional checks and balances. He emphasized that his actions reflect defending constitution rather than obstructing democratic decision-making.
At the same time, Cho acknowledged the legislature retains the power to respond through a no-confidence motion. He stated that removal under such circumstances would represent a democratic badge of honor.
Under Taiwan’s Constitution, a successful no-confidence vote would trigger major political consequences. Specifically, Cho would have ten days to resign or request dissolution of the legislature.
Later that evening, President William Lai released a statement supporting the executive’s fiscal and constitutional concerns. He warned the revisions could weaken central finances and distort revenue allocation mechanisms nationwide.
Additionally, Lai said reduced fiscal flexibility could hinder disaster response, national security readiness, and major policy implementation. He urged all government bodies to uphold constitutional integrity when enforcing legislation.
Lai also highlighted broader legislative actions that have strained institutional balance in recent months. Notably, he cited amendments that effectively limited the Constitutional Court’s ability to operate.
Currently, the court lacks the required quorum after lawmakers raised participation thresholds earlier this year. As a result, judicial oversight of constitutional disputes remains stalled.
Political analysts say the confrontation reflects growing institutional tension between Taiwan’s executive and legislative branches. Furthermore, the standoff may shape future debates on fiscal authority and democratic accountability.
Looking ahead, experts expect continued negotiations or political escalation in the coming weeks. Ultimately, Cho’s stance on defending constitution could redefine executive resistance within Taiwan’s democratic system.
