Taiwan's DPP supports Cabinet plan to stop allocation of more funds to local areas

Taipei, Dec. 12 (CNA) Taiwan's ruling Democratic Progressive Party (DPP) caucus on Friday pledged full support for any countermeasure adopted by the Cabinet in response to a controversial opposition-backed amendment to a government revenue allocation law, which would allocate more funds to local governments.

The caucus made the pledge after a meeting with President Lai Ching-te (賴清德) held on Friday.

That meeting came after the opposition Kuomintang (KMT) and Taiwan People's Party (TPP) on Dec. 5 rejected a Cabinet motion asking the Legislature to reconsider the amendment to the law, which the two parties passed using their combined majority last month.

All 51 DPP lawmakers attended the meeting with Lai, DPP caucus Director-General Chung Chia-pin (鍾佳濱) told reporters. Cabinet Secretary-General Xavier Chang (張惇涵) was also present.

Under the amendment to the Act Governing the Allocation of Government Revenues and Expenditures, local governments would receive a larger share of central government revenue each year.

However, the Cabinet has argued that the amendment "cannot be implemented," as it would force the central government to increase borrowing for the 2026 general budget by NT$264.6 billion (US$8.47 billion), pushing it beyond the statutory debt ceiling.

The issue, Chung said, has also bogged down the review of the fiscal 2026 general budget in the Legislature.

Chung said that with the Constitutional Court paralyzed, Lai has asked Premier Cho Jung-tai (卓榮泰) to consider not countersigning the amendment, in which case the president would not be able to promulgate the legislation.

DPP lawmakers unanimously agreed to follow the president's lead in working with the premier to counter what they see as potentially "unconstitutional" laws passed by the opposition, Chung said.

Wu Szu-yao (吳思瑤), who heads the DPP's Policy Committee, said options discussed included not countersigning the measure or countersigning it, but declining to execute it.

Either option would remain within constitutional limits, Wu said, adding that the DPP caucus would give the Cabinet its "full backing" and work to explain the issue to the public.

Earlier Friday, Lai told reporters in Tainan that the amendment, along with the opposition's blocking of a NT$1.25 trillion special defense budget, had undermined national security, social stability, fiscal sustainability, and civil rights.

"Under these grim circumstances, it is incumbent upon me to meet with the DPP legislative caucus to discuss how to respond," Lai said.

After the opposition lawmakers voted down the Cabinet's reconsideration motion, Cho said he was "under no pressure to execute" the amendment, citing procedural flaws in its review.

The remark drew sharp criticism from the opposition, with the KMT caucus threatening to introduce a motion condemning the premier.

The Constitutional Court, which currently has only eight sitting judges, has been immobilized since January 2025, when a legal revision took effect. The legislation pushed through by the KMT and TPP requires at least 10 grand justices to participate in deliberations and nine to approve an unconstitutional ruling.

Previously, two-thirds of sitting justices were required to deliberate, and a simple majority to rule.

In July, opposition lawmakers also vetoed all seven of President Lai's nominees to fill vacancies on the 15-seat Constitutional Court.