TAIPEI (Reuters) -Taiwan’s cabinet said on Tuesday it will ask the opposition controlled legislature to release more than $4 billion in funds frozen as part of a stand-off over this year’s budget, which the government says could seriously affect their operations.
While the Democratic Progressive Party’s (DPP) Lai Ching-te won the presidency in last year’s elections, the party lost its majority in parliament.
Taiwan’s main opposition party, the Kuomintang (KMT), along with the small Taiwan People’s Party (TPP), control the most seats, and earlier this year voted through sweeping cuts to 2025’s budget, saying they were targeting waste, and froze other funds saying they wanted greater oversight on spending plans.
In a statement, cabinet spokesperson Michelle Lee said the government will ask parliament to unfreeze T$138.1 billion ($4.25 billion) in funds.
The cabinet "hopes the Legislative Yuan can unfreeze it all in a short period of time to reduce the difficulties and inconveniences people have in their dealings with the administration", Lee said, using parliament’s formal name.
The cabinet will also seek a legal interpretation from the constitutional court on both the constitutionality of the budget as passed by lawmakers, and a separate legal amendment granting more money to local governments at the expense of the central government, Lee added.
The defence ministry has warned of a "serious impact" to security from the amended budget, saying it will require a cut in defence spending of some T$80 billion at a time when the island is facing an elevated Chinese military threat.
Taiwan’s opposition has shown little appetite to seek compromise with the government on the budget issue, given they are angered at a campaign led by civic groups and backed by senior DPP officials to recall a swathe of opposition lawmakers.
The KMT and TPP chairmen met earlier on Tuesday vowing to redouble efforts to work together against the "green communists", referring to the DPP’s party colours, and will hold a joint protest in front of the presidential office on Saturday.
"We don’t just want to take down Lai Ching-te, but the entire corrupt, arrogant and abusive system," KMT Chairman Eric Chu wrote on his Facebook (NASDAQ:META) page after meeting TPP Chairman Huang Kuo-chang.
Lai and the DPP’s public approval ratings have remained relatively high.
A poll last week by Taiwan television station Mirror TV put the DPP’s approval rating at 45%, relatively steady over the past year, with both the KMT and TPP on around 28%, both down compared with the year ago period.
($1 = 32.4820 Taiwan dollars)