Taiwan’s 2025 Budget Plan Standoff: A Political Battle Between the Legislature and Cabinet
The Legislative Yuan of Taiwan on Wednesday, March 6, 2025, voted to uphold the 2025 central government budget plan, rejecting an attempt by the Cabinet to overturn it. The move, which followed a 61-51 vote along party lines, underscores the deep political divisions between the ruling Democratic Progressive Party (DPP) and the opposition, primarily led by the Kuomintang (KMT) and Taiwan People’s Party (TPP).
What Is the 2025 Budget Plan?
The 2025 central government budget plan, originally passed in December 2024, outlines Taiwan’s national spending, revenue allocation, and financial priorities for the upcoming fiscal year. The budget includes funding for various government departments, defense, infrastructure, education, and social welfare programs.
However, opposition lawmakers cut or froze several proposed expenditures, leading to concerns from the ruling DPP that such changes could disrupt normal government operations. The Cabinet, led by Premier Cho Jung-tai, argued that the opposition-controlled Legislature had altered the budget in a way that made it “difficult to implement.”
The Role of the Opposition: KMT and TPP’s Stance
The KMT and TPP, which together hold a legislative majority, have used their numbers to challenge the DPP government’s policies. In December 2024, they approved the budget plan with several modifications, including:
- Cutting or freezing funds for certain government agencies, citing inefficiency or misallocation.
- Redirecting funds toward opposition-backed priorities.
- Increasing legislative oversight over government spending.
Their argument is that the DPP government needs to be held accountable for its financial management and should not have unchecked control over the budget.
Cabinet’s Bid to Overturn the Budget Plan Fails
On February 27, 2025, the Executive Yuan (Cabinet) invoked Article 3-2 of the Additional Articles of the Constitution, requesting a revote to overturn the Legislature’s modifications. The Constitution allows the Executive Yuan to request a revote on laws it considers “difficult to implement”—but only if the president approves.
However, in the March 6 revote, the opposition-dominated Legislature once again upheld the budget, voting 61-51 in favor of the original amendments made in December.
DPP’s Next Move: Turning to the Constitutional Court?
Premier Cho Jung-tai has indicated that the government may seek constitutional relief, possibly filing a case with the Constitutional Court to challenge the Legislature’s budget amendments. However, legal obstacles exist:
- Amendments to the Constitutional Court Procedure Act (implemented in January 2025) require at least 10 justices to hear and rule on a case.
- Due to these procedural hurdles, the Constitutional Court has been unable to function effectively in recent months.
This legal deadlock complicates the DPP government’s ability to challenge the opposition’s legislative maneuvers.
Political Implications: Fifth Major Defeat for the DPP
This marks the fifth major legislative defeat for the DPP government since President Lai Ching-te took office less than 10 months ago. With the opposition controlling the Legislature, the DPP faces increasing obstacles in implementing its policies.
The budget battle also sets the stage for continued political tensions, as both sides prepare for the next legislative session and potential legal battles over government spending and constitutional authority.
FAQs
What is the 2025 Taiwan central government budget plan?
The 2025 budget plan outlines Taiwan’s national spending priorities, including defense, infrastructure, social programs, and government administration. The opposition modified the plan by cutting or freezing certain expenditures.
Why did the Cabinet request a revote?
The Executive Yuan, led by Premier Cho Jung-tai, argued that the Legislature’s changes to the budget disrupted government operations and invoked its constitutional right to request a revote.
Why did the opposition vote against the revote?
The KMT and TPP oppose what they see as DPP government overreach in budget allocation. They aim to redirect spending and increase oversight of the government’s financial management.
Can the DPP take legal action to overturn the budget changes?
Yes, Premier Cho has suggested that the DPP may challenge the budget modifications in the Constitutional Court. However, procedural changes have made the court effectively non-functional.
What happens next?
The DPP government must now operate under the opposition-altered budget. If they pursue legal action, it could lead to a constitutional crisis over executive vs. legislative power.
