Taiwan's KMT-Led Legislature Approves Historic Budget Cuts for 2025:

Taiwan's legislature, controlled by the KMT, has approved significant cuts to the 2025 national budget, which will likely hinder the ability of the Democratic Progressive Party (DPP)-led administration to operate and reduce Taiwan's resilience against pressure from China. On January 21, lawmakers from the Kuomintang (KMT) and Taiwan People’s Party (TPP), who hold a majority in the Legislative Yuan, passed amendments that slashed 6.6% from the Executive Yuan’s proposed budget—the largest cut in Taiwan’s history. The original budget, approved in August 2024, had projected a slight surplus.

On January 21, ROC Premier Cho Jung-tai, leader of the DPP-controlled Executive Yuan, accused opposition parties of ma

king “indiscriminate budget cuts” aimed at disrupting government operations. Cho warned that these cuts would harm Taiwan in five key areas: national competitiveness, defense capabilities, technological progress, public services, and the government’s ability to communicate with citizens. The KMT, however, justified the reductions as a necessary oversight measure to curb what they see as excessive and wasteful DPP spending.

The Ministry of National Defense (MND) faced significant budget cuts, including a 30% freeze on its operating budget and a 3% reduction in military equipment expenditure. These cuts threaten to impact essential military functions, such as maintenance of weapons and materials. Deputy Minister of Military and Political Affairs Alex Po Horng-Huei stated that these reductions benefit China and harm Taiwan’s combat readiness. The domestic submarine program, crucial for Taiwan’s defense, saw a 50% freeze, halting submarine construction until sea trials are completed. Additionally, 50% of the budget for the Minxiong Aerospace and Drone Park, vital to Taiwan's drone development, was frozen, slowing the nation’s defense technology advancements. These budget constraints pose a serious setback for Taiwan’s ability to defend against a potential PRC invasion, which could heavily rely on drone warfare.

Deputy Minister of Military and Political Affairs, Alex Po, highlighted that the budget cuts would severely impact Taiwan’s defense capabilities. He pointed out that the more than 15% reduction in personnel travel expenses would limit the military’s ability to transport new equipment from abroad for installation and to train service members on its use. Additionally, the 60% cut in media and publicity expenses would hinder the military’s efforts to recruit new personnel and counter PRC disinformation and political warfare tactics. Po emphasized that the combined cuts and freezes affect up to 44% of Taiwan's total defense budget, significantly undermining the country’s military preparedness.

Taiwan's Budget Cuts Threaten National Security and Diplomacy, DPP Responds:

The Mainland Affairs Council (MAC), responsible for managing Taiwan's cross-strait policy, faced significant budget cuts and freezes, reducing its budget by approximately 21%. MAC Spokesperson Liang Wen-chieh warned on January 16 that these reductions would "paralyze" the agency and hinder its ability to address PRC United Front activities aimed at infiltrating Taiwan. These activities include both overt and covert operations designed to promote the Chinese Communist Party's narrative that Taiwan is part of China, making Taiwan more vulnerable to espionage, military intelligence theft, and other subversive operations.

The Ministry of Foreign Affairs (MOFA) also experienced considerable budget cuts to its operational and international assistance programs. MOFA officials expressed concerns that these reductions would weaken Taiwan’s diplomatic capabilities, including overseas missions and international exchanges. The cuts could damage Taiwan’s global influence and make it more difficult to counter PRC efforts to diplomatically isolate Taiwan, particularly in regions like the South Pacific where Taiwan has lost several allies to Beijing.

In response, DPP officials announced plans to resist the budget cuts. DPP Caucus Whip Ker Chien-ming stated on January 23 that the party would seek a court injunction to block the amendments, while DPP Caucus Secretary-General Rosalia Wu Szu-yao indicated they would challenge the cuts in the Constitutional Court, arguing the Legislative Yuan cannot infringe upon the rights of other constitutional organs. However, with the current court lacking sufficient justices, it remains uncertain when the case can be heard. Premier Cho Jung-tai also suggested the Executive Yuan might request a revote in the Legislative Yuan, though this is unlikely to reverse the cuts given the opposition's majority.

The recent budget cuts and freezes are expected to severely impact Taiwan's government agencies, limiting their ability to carry out essential functions. This weakening of government operations poses a significant threat to the policy agenda of President Lai Ching-te’s administration, which is focused on countering the PRC’s efforts to undermine Taiwan’s sovereignty.

The KMT-TPP-backed budget cuts target critical areas aimed at defending Taiwan against PRC actions, including its ongoing campaigns to destabilize the nation in preparation for a potential blockade or invasion. Cuts to public affairs funding reduce Taiwan’s capacity to combat China’s growing information operations and communicate policies to the public. Delays in the procurement of submarines undermine Taiwan’s defense strategies, hindering its ability to deter a PRC attack. Additionally, cuts to Taiwan's drone development program slow efforts to adapt lessons from the Ukraine conflict, limiting the nation's preparation for future defense challenges, even as China continues to advance its own drone capabilities. Cuts to Taiwan’s diplomatic programs weaken its ability to counter China’s persistent attempts to isolate Taiwan on the global stage.

While the KMT and TPP defend these budget reductions on domestic political grounds, they have not clarified why these cuts target critical defense and diplomatic initiatives that are vital for protecting Taiwan from PRC coercion and aggression.

DPP Launches Recall Effort Against KMT Over Budget Cuts:

The DPP legislative caucus has launched a mass recall effort against opposition KMT legislators in response to the passage of bills that reduce Taiwan's national budget and weaken the Constitutional Court. In retaliation, the KMT may initiate a recall campaign against DPP lawmakers. This back-and-forth recall movement threatens to further destabilize Taiwan’s already fractured political landscape. DPP legislative caucus chair Ker Chien-ming proposed targeting 39 directly elected KMT lawmakers, including Legislative Yuan Speaker Han Kuo-yu and Deputy Speaker Johnny Chiang Chi-chen. Civic groups have already started gathering signatures for the recall.

However, the recall effort is complicated by the fact that 13 KMT members and 8 TPP legislators in the Legislative Yuan were appointed via proportional representation, making them ineligible for recall. KMT legislator Lai Shyh-bao confirmed that the KMT plans to target 38 directly elected DPP legislators in its counter-campaign. KMT Chairman Eric Chu has publicly called for the recall of two DPP members.

This back-and-forth recall battle highlights deep political divisions within Taiwan, which continue to undermine government functions. Internally, the DPP is divided on the mass recall effort. Secretary-General Lin Yu-chang expressed concerns about the political consequences of such a campaign so early in Lai Ching-te’s presidency, and President Lai himself did not endorse the recall but acknowledged citizens' right to initiate such efforts. The success of these recall campaigns remains uncertain, especially given recent amendments to the Public Officials Election and Recall Act, which require petitioners to provide national ID copies.

In other news, Taiwan’s Ministry of National Defense (MND) has introduced new protocols to enhance surveillance and response to international vessels suspected of cutting undersea cables in Taiwanese waters. Four "key surveillance zones" off the coasts of Yilan, Pingtung, Penghu, and New Taipei’s Bali District will be closely monitored using naval intelligence and radar systems. The new measures aim to strengthen cooperation between the navy and the Coast Guard Administration (CGA) in protecting Taiwan’s undersea cables, with plans for joint operations to board suspicious vessels.

This policy shift follows two incidents of potential sabotage in early January. On January 3, the Shunxing 39 cargo ship, flagged by Cameroon, cut undersea cables near Keelung, but bad weather prevented the CGA from apprehending it. On January 6, the Mongolian-flagged Bao Shun took a suspicious course near cables north of Taiwan. The CGA chased the vessel away without boarding or questioning it, as no cables were damaged. These incidents prompted Taiwan to implement the new protocols to safeguard critical infrastructure from potential PRC sabotage.

References:

• (No date) YouTube. Available at: https://www.youtube.com/watch?v=s08rpZwIM9s (Accessed: 25 January 2025).
• China-taiwan weekly update, January 24, 2025 (no date) Institute for the Study of War. Available at: https://www.understandingwar.org/backgrounder/china-taiwan-weekly-update-january-24-2025 (Accessed: 25 January 2025).
• ET Online | 14 Oct 2024, 03:35 PM IST (2024) China launches war games around Taiwan, draws anger in Taipei, The Economic Times. Available at: https://economictimes.indiatimes.com/news/international/world-news/china-launches-war-games-around-taiwan-draws-anger-in-taipei/videoshow/114214787.cms?from=mdr (Accessed: 25 January 2025).