TAIPEI (Reuters)

Taiwan’s cabinet announced it will request the opposition-controlled legislature to unfreeze over $4 billion in funds, frozen due to a budget stand-off affecting government operations.

The Democratic Progressive Party (DPP) faced a setback in parliament after Lai Ching-te won the presidency last year, losing majority control to the opposition Kuomintang (KMT) and the Taiwan People’s Party (TPP). The KMT and TPP implemented significant cuts to the 2025 budget, citing waste reduction efforts and freezing other funds for better spending oversight.

Cabinet spokesperson Michelle Lee stated that the government will ask parliament to unfreeze T$138.1 billion (approximately $4.25 billion) in funds swiftly to alleviate public difficulties with administration processes. Moreover, the government seeks a legal interpretation from the constitutional court regarding the constitutionality of the budget and an amendment to allocate more funds to local governments.

The defense ministry cautioned about serious security impacts due to the budget amendments, potentially necessitating a T$80 billion cut in defense spending amid heightened military threats from China.

Despite the ongoing budget conflict and a campaign to recall opposition lawmakers, the opposition shows little willingness to negotiate. KMT and TPP leadership pledged to coordinate efforts against the DPP, which they refer to as “green communists.”

Nonetheless, approval ratings for Lai and the DPP remain high, with a recent poll indicating the DPP’s support at 45%, while both KMT and TPP hover around 28%, lower than last year.