Taiwan parliament approves budget cuts amid political tensions, defence spending targeted: Video
Taiwan’s opposition-dominated parliament on Tuesday, January 21, approved significant cuts to the 2025 national budget, a move criticised by President Lai Ching-te's Democratic Progressive Party (DPP) for undermining governance and jeopardising the island's security.
The budget, initially proposed at NT$3.1 trillion (about USD 94 trillion), faced a reduction of NT$207.5 billion (around USD 6 billion) following a vote led by the opposition Kuomintang (KMT) and supported by the Taiwan People’s Party (TPP).
“This is returning money to the people,” KMT caucus whip Fu Kun-chi stated after the vote.
The reductions affect various sectors, including defence spending, which was slated to hit a record NT$647 billion (about USD 19.7 billion) in 2025.
Specific cuts include freezing 50% of funding for a submarine programme and a drone industry park, reducing foreign travel and training by 15%, and trimming operational costs.
“The freeze of the submarine budget will let the world see that Taiwan’s parliament has obviously compromised Taiwan’s determination of its national defence capabilities,” Premier Cho Jung-tai remarked before the final vote.
The parliamentary vote coincided with the swearing-in of US President Donald Trump, who has previously pressured allies to increase their defence spending.
While Taiwan relies on US arms sales to strengthen its defences, defence expert Chieh Chung of Tamkang University cautioned that the budget cuts could prompt the US to question its support for Taiwan.
“The US might question whether its support for Taiwan is justified when internal political disputes reduce the effectiveness of such support,” Chieh told AFP.
