Taipei: Premier Cho Jung-tai on Thursday highlighted a looming financial challenge, stating that the central government would encounter a NT$300 billion (US$9.5 billion) shortfall if the Cabinet's general budget proposal fails to secure approval from the Legislature.

According to Focus Taiwan, lawmakers from the Kuomintang (KMT) and the Taiwan People's Party (TPP), who collectively hold a legislative majority, have declared their intent to withhold approval of the proposal. Their decision hinges on the Cabinet's allocation of funds for salary increases for active-duty military personnel and pension hikes for public school teachers and civil servants. Although the Legislature passed amendments last year mandating such raises, the Democratic Progressive Party (DPP) government has sought constitutional interpretations, which remain pending.

During a news conference with 11 Cabinet members, Cho explained that without legislative approval, the government would be unable to access NT$299.2 billion designated for new initiatives (NT$101.7 billion), ongoing expenses and programs (NT$180.5 billion), and reserve funds (NT$17 billion).

According to the Directorate-General of Budget, Accounting and Statistics, the accessible portion of the NT$3.03 trillion general budget will be directed towards personnel costs and existing programs.

The Ministry of National Defense is poised to experience the largest funding gap, with a shortfall of NT$75.2 billion. Vice Defense Minister Hsu Szu-chien warned that this deficit could hinder the military's deterrence efforts against China, including the procurement of Harpoon missiles and M142 High Mobility Artillery Rocket Systems (HIMARS). Additionally, it may impact necessary overseas training for F-16V fighter jets and the strategic reserves of parts for Taiwan's Mirage 2000 jets.

Cho emphasized the urgency of the situation, noting that over four months have passed since the Cabinet submitted the budget proposal to the Legislature for review. He remarked on the unprecedented delay, stating, "We are in a new year, but the general budget has not even advanced to committee review. This is a first in the constitutional history of our country."

KMT Chairperson Cheng Li-wun responded by urging the Cabinet to prioritize salary raises for military personnel within the budget proposal, in accordance with legislative mandates, and to avoid fostering unnecessary social division.