Taiwan Premier Says Opposition’s Budget Moves Would Hurt Defense

(Bloomberg) — Taiwan Premier Cho Jung-tai said a push by opposition lawmakers to place conditions on some funds for the military this year, including for a high-profile submarine project, would badly undermine the archipelago’s defenses.

The move to allow only half of the funding for the subs now “shows the world that Taiwan’s determination to defend itself has been significantly compromised,” Cho said at a press briefing in Taipei on Tuesday.

“Our international credibility and determination have been compromised,” he said. “It’s very inappropriate.”

Taiwan opposition lawmakers are working to cut at least NT$210 billion ($6.4 billion) – a record — from the government’s overall budget. At the same time, it’s making some defense funds, such as for the subs and drone development, contingent on projects passing a review by lawmakers.

Taiwan earlier announced plans to spend a record amount on defense this year to deter China from using force to achieve its goal of bringing the democracy of 23 million people under its control.

The opposition, led by the Kuomintang, says the budget changes it wants are necessary to avoid misuse of funds. Cho has held three briefings since Thursday last week to criticize lawmakers for their handling of 2025 spending plans. In one, he said: “Isn’t this paralyzing the country? Isn’t this destroying the government?”

His comments appear to be aimed at piling pressure on opposition lawmakers, making it harder for them to make some budgetary reductions.

Opposition lawmakers won a majority in the legislature in January last year, making it easy for them to pass changes to the law and giving them great influence over the budget. They’ve used the advantage to try to pass several legal amendments they say are much-needed reforms.

The ruling Democratic Progressive Party counters that the moves are aimed at making it harder for Lai to govern Taiwan, which sits at the heart of US-China tensions. In October, the Constitutional Court rejected legal changes that would have expanded the power of the legislature at the expense of the presidency.

Lai said in a speech in the eastern city of Taitung on Tuesday that all of Taiwan’s political parties should support the archipelago’s defense efforts, the semi-official Central News Agency reported. 

He referred to a “new international situation,” an apparent nod to the inauguration of President Donald Trump, who has suggested Taiwan “should pay” for US protection against Chinese military aggression.

In fall 2023, Taiwan unveiled a prototype of its first submarine assembled at home, a feat made possible with the secretive help of other countries. The project comes as China expands its military activity around Taiwan to intimidate the government of Lai, who it views as a “secessionist.”

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