On Thursday, Premier Cho Jung-tai held a press conference in response to the Legislature's decision to reduce the central government's 2025 general budget by NT$207.6 billion (US$6.3 billion). The premier noted that the cuts target specific items and agencies, impeding the government's ability to implement policies. He stated that these budget cuts and freezes undermine the constitutional system, and that the Executive Yuan has the duty and responsibility to propose necessary remedies based on constitutional mechanisms and procedures.
Premier Cho said that through the collective efforts of the people of Taiwan, the nation's economic growth rate for 2024 is forecast to reach 4.27%, the second-highest in the past decade. This economic growth and the accompanying increase in revenue should also be reflected in government spending, particularly by expanding public services, improving industry guidance policies and strengthening national defense.
The premier explained that the central government's proposed general budget for the 2025 fiscal year was NT$3.1325 trillion (US$95.6 billion), an increase of NT$280.6 billion (US$8.6 billion), or 9.8%, over the previous year. This increase covers several areas, including public infrastructure, national defense, financial assistance for the National Health Insurance fund, the "Healthy Taiwan" initiative, national cancer prevention programs, social housing development through a government housing fund, the National Pension Program, National Science and Technology Council research programs, and funding for child care and other services for children aged two to under six. However, the Legislature has now passed cuts of NT$207.6 billion (US$6.3 billion), amounting to 6.6% of proposed total expenditures. These cuts are over six times greater than the average budget cuts passed in the last three years, and will make it far more difficult for the government to move forward with its planned policies.
Premier Cho emphasized that the government exists to provide better living conditions for the people, accelerate the development of industries and firmly maintain the nation's sovereignty. He urged opposition party groups to pull back from the brink and change course.