Taiwan’s KMT-Led Legislature Passes Record 2025 Budget Cuts, Sparking Defense Concerns: 

Taiwan’s legislature, dominated by the Kuomintang (KMT), has passed sweeping cuts to the 2025 national budget, marking the largest reduction in the nation’s history and raising fears about its potential impact on government operations and defense readiness. The move, backed by both the KMT and Taiwan People’s Party (TPP), reduced the Executive Yuan’s proposed spending by 6.6% — a historic cut that analysts say could weaken Taiwan’s resilience amid growing pressure from China. The original budget, drafted by the Democratic Progressive Party (DPP)-led Executive Yuan and approved in August 2024, had projected a modest surplus. However, during the January 21 session, opposition lawmakers approved amendments slashing major portions of the plan.

Premier Cho Jung-tai, head of the DPP-controlled Executive Yuan, denounced the move as a politically motivated attempt to obstruct governance. He accused the opposition of making “reckless and indiscriminate” cuts that would harm Taiwan’s national competitiveness, defense strength, technological innovation, and essential public services.

The KMT, meanwhile, defended the reductions as a necessary step to curb what it described as excessive and inefficient government spending. Party leaders claimed the cuts were part of their commitment to fiscal discipline and accountability.

Among the hardest-hit sectors was the Ministry of National Defense (MND), which saw a 30% freeze on operational spending and a 3% reduction in military equipment budgets. According to Deputy Minister of Military and Political Affairs Alex Po Horng-Huei, these changes could severely affect maintenance, logistics, and training, ultimately weakening Taiwan’s ability to respond to external threats.

The budget for Taiwan’s domestic submarine development program — a cornerstone of its maritime defense strategy — was slashed by 50%, halting new submarine construction until sea trials are completed. Similarly, half the funding for the Minxiong Aerospace and Drone Park, a key hub for drone and defense technology innovation, was frozen, potentially delaying critical advancements in unmanned warfare systems.

Po also warned that the cumulative effect of these reductions could cripple up to 44% of Taiwan’s total defense budget, limiting personnel travel, equipment acquisition, and recruitment campaigns. A 15% cut in travel expenses would restrict the military’s ability to send teams abroad for equipment transport and training, while a 60% reduction in media and outreach funding would undermine efforts to attract new recruits and counter Chinese disinformation campaigns.

Defense experts and government officials fear that these deep cuts will leave Taiwan more vulnerable to Chinese aggression, undermining deterrence at a time when Beijing continues to increase military pressure across the Taiwan Strait.

Keywords: Taiwan, KMT, DPP, budget cuts, 2025 national budget, defense spending, China, military readiness, Executive Yuan, Alex Po Horng-Huei, Cho Jung-tai.

Taiwan’s Budget Cuts Jeopardize National Security and Diplomacy as DPP Pushes Back

Taiwan’s Mainland Affairs Council (MAC) and Ministry of Foreign Affairs (MOFA) have become the latest casualties of sweeping budget reductions approved by the KMT- and TPP-led legislature — cuts that officials warn could seriously undermine Taiwan’s security and international standing.

The Mainland Affairs Council, which oversees Taiwan’s cross-strait policy, suffered a 21% budget reduction, one of the steepest among government agencies. On January 16, MAC spokesperson Liang Wen-chieh cautioned that such severe funding losses could “paralyze” the agency, crippling its capacity to respond to Beijing’s United Front activities — covert and overt operations by the Chinese Communist Party designed to infiltrate Taiwan, spread pro-China narratives, and erode public confidence in self-governance. Liang warned that the reduced budget would weaken Taiwan’s defenses against espionage, intelligence leaks, and other subversive acts by the PRC.

The Ministry of Foreign Affairs (MOFA) also faced substantial cuts, particularly in its operational and international cooperation programs. According to MOFA officials, these reductions will diminish Taiwan’s ability to sustain overseas missions, conduct diplomatic outreach, and support partner nations through aid and cultural exchange. Such losses, they warned, could further isolate Taiwan internationally, especially as Beijing continues to poach its diplomatic allies — a trend already visible in the South Pacific and parts of Central America.  In response, the Democratic Progressive Party (DPP) 

.has vowed to challenge the cuts through legal and political channels. DPP Caucus Whip Ker Chien-ming announced on January 23 that the party plans to seek a court injunction against the amendments, while DPP Caucus Secretary-General Rosalia Wu Szu-yao said they will file a Constitutional Court appeal, arguing that the legislature overstepped its constitutional authority by interfering with other branches of government. However, the shortage of sitting justices could delay any ruling, leaving the issue unresolved for months.

Premier Cho Jung-tai has also floated the idea of requesting a revote in the Legislative Yuan, though such a move appears unlikely to succeed given the opposition’s firm majority.

The cumulative effect of these cuts, officials warn, could cripple Taiwan’s governance capacity at a critical time. The reductions directly weaken President Lai Ching-te’s policy agenda, which prioritizes strengthening national defense, improving international partnerships, and countering China’s ongoing campaign to undermine Taiwan’s sovereignty.

The KMT-TPP-backed budget targets key sectors central to Taiwan’s defense and foreign policy — including funding for public communications, submarine development, and drone technology. The freezing of submarine procurement could delay vital naval deterrence measures, while cuts to drone development hinder Taiwan’s ability to incorporate lessons from the Ukraine conflict and respond to China’s rapidly advancing unmanned systems. Similarly, reductions in public affairs funding limit the government’s ability to counter Chinese disinformation and maintain transparency with the public.

Diplomatic setbacks may prove equally damaging. MOFA’s restricted budget undermines Taiwan’s global engagement efforts, making it harder to resist Beijing’s relentless campaign to isolate the island on the world stage.

While the KMT and TPP have defended the cuts as part of their fiscal oversight role, they have not explained why crucial defense and diplomatic initiatives — essential to safeguarding Taiwan from PRC coercion — were disproportionately targeted.

Keywords: Taiwan, DPP, KMT, TPP, budget cuts, Mainland Affairs Council, Ministry of Foreign Affairs, cross-strait policy, PRC, national security, Lai Ching-te, defense spending, diplomacy.

DPP Launches Recall Campaign Against KMT Over Controversial Budget Cuts

Taiwan’s Democratic Progressive Party (DPP) has initiated a large-scale recall campaign targeting opposition lawmakers from the Kuomintang (KMT) following the passage of contentious bills that slash Taiwan’s national budget and weaken the powers of the Constitutional Court. In response, the KMT has vowed to launch a counter-recall movement against DPP legislators, setting the stage for a politically volatile showdown that could further destabilize Taiwan’s divided legislature.

DPP caucus leader Ker Chien-ming announced plans to target 39 directly elected KMT legislators, including Legislative Yuan Speaker Han Kuo-yu and Deputy Speaker Johnny Chiang Chi-chen. Civil society groups have already begun collecting signatures to initiate the recall process. However, because 13 KMT and 8 TPP legislators hold proportional representation seats, they are legally exempt from recall, limiting the campaign’s overall scope.

In retaliation, KMT legislator Lai Shyh-bao confirmed that the party intends to pursue recall petitions against 38 DPP lawmakers, while KMT Chairman Eric Chu publicly called for the immediate recall of two DPP members. Both sides accuse the other of abusing recall powers for political revenge rather than public accountability.

The escalating recall conflict underscores Taiwan’s deepening partisan rift, which continues to erode effective governance. Within the DPP itself, opinions are divided. Secretary-General Lin Yu-chang has voiced concerns that pursuing mass recalls so early in President Lai Ching-te’s administration could backfire politically, further inflaming tensions. President Lai has refrained from openly supporting the recalls, emphasizing instead that citizens have the constitutional right to hold elected officials accountable.

Despite the political theater, the success of these recall drives remains uncertain. Recent amendments to the Public Officials Election and Recall Act now require petitioners to submit copies of their national ID cards, a stricter measure that could slow down or deter large-scale recall efforts.

Meanwhile, Taiwan’s Ministry of National Defense (MND) has introduced new surveillance protocols to counter potential threats to undersea communication cables following a series of suspicious maritime incidents earlier this month. The MND has designated four key monitoring zones — off the coasts of Yilan, Pingtung, Penghu, and New Taipei’s Bali District — to be closely tracked using naval intelligence, radar systems, and joint operations with the Coast Guard Administration (CGA).

These heightened measures come after two incidents in early January involving foreign cargo ships suspected of tampering with Taiwan’s undersea cables. On January 3, a Cameroon-flagged vessel, Shunxing 39, severed cables near Keelung, though poor weather prevented the CGA from intercepting it. Days later, on January 6, the Mongolian-flagged Bao Shun was detected navigating unusually close to cables north of Taiwan. Although the vessel was chased away, authorities described its behavior as “highly suspicious.”

The new defense protocols aim to strengthen maritime security and prevent sabotage, particularly amid growing concerns over potential PRC-linked interference in Taiwan’s critical infrastructure.

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).