TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) announced Saturday that the Cabinet will prioritize local subsidies for districts represented by lawmakers who supported the central government’s 2025 budget proposal.
During a visit to Victory New Village in Pingtung County, Cho criticized the legislature for what he described as unreasonable cuts to the Cabinet’s budget plan, per CNA. He said the government would focus its support on local administrations aligned with its fiscal agenda.
Cho stressed that the Cabinet’s move was “blowback” and not retaliation. He encouraged local governments protesting over subsidy cuts to question their legislators’ decisions to back the budget reductions.
The remarks sparked a swift backlash from the opposition. TPP Chair Huang Kuo-chang (黃國昌) condemned Cho’s characterization, calling it an “insulting” justification that reflects a “rule of man” mentality rather than adherence to the rule of law, per RTI.
TPP Legislator Chang Chi-kai (張啓楷) echoed the criticism, warning that Cho’s comments undermine Taiwan’s democratic foundations. He urged Cho to step down, warning that the DPP could face political consequences if it continues backing the move, per Storm Media.
On Monday, Taichung Mayor Lu Shiow-yen (盧秀燕) urged Cho to retract his comments to avoid further political damage to President Lai Ching-te (賴清德), per UDN. Taoyuan Mayor Simon Chang (張善政) also weighed in on Sunday, urging Cho to respect existing laws and refrain from using subsidies to sow division, per Liberty Times.
Taipei Mayor Chiang Wan-an (蔣萬安), whose administration is seeking legal remedies over the subsidy cuts, was more direct, per CNA. On Sunday, he accused Cho of “blackmailing local governments” and “dividing up the spoils.”
Cabinet Spokesperson Michelle Lee (李慧芝) defended Cho’s remarks on Sunday, saying terms like “dividing up the spoils” and “rule of man” are political rhetoric that misrepresent the legal situation, per CNEWS. She said the cuts were the direct result of the legislature slashing the Cabinet’s budget and urged the opposition to work with the government on legal remedies.
DPP Legislator Wu Szu-yao (吳思瑤) supported Lee’s stance on Sunday, reiterating that the cuts stemmed from opposition-led budget reductions, per CNA. She said Cho’s comments were intended to offer a practical response to the current political impasse.
Under the amended Act Governing the Allocation of Government Revenues and Expenditures, the revenue split between the central and local governments favors local governments more, per CNA. However, critics said the new formula benefits cities that lean toward the KMT.
In addition, the amendments require that local subsidies not be lower than those provided in the previous fiscal year, per Liberty Times. As a result, the central government could see reduced revenue while still shouldering a similar financial burden if it does not cut local subsidies this year.
