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  • 5/28/2025
Taiwan's Cabinet last week said that it will cut central government subsidies for local governments by 25%. The ruling party says the reductions are necessary in the face of unreasonable budget cuts by the opposition.
Transcript
00:00Two sides, one budget.
00:02Last week, Taiwan's cabinet announced that the central government will cut subsidies to local governments by 25%.
00:10It's a move that the ruling Democratic Progressive Party is pinning on the country's opposition.
00:16Taiwan's legislature controls the country's general budget, and the opposition-held chamber is deeply fractured.
00:35The DPP is frequently at odds with the main opposition Kuomintang and the smaller Taiwan People's Party.
00:41A bevy of issues divide the two sides, but none are as contentious as the country's general budget.
00:49The ruling DPP's cabinet originally drafted a $100 billion U.S. proposal for the year,
00:56but opposition lawmakers cut that proposal by a record 7% and passed the revised spending bill.
01:03The bill stipulates that the cabinet must make discretionary cuts of $2.1 billion U.S. dollars to its own budget.
01:12The ruling party now says the opposition forced the cabinet into cutting local government subsidies.
01:17The KMT, which holds a majority of the country's local government seats, has shot back,
01:31saying that the cabinet's decision is unlawful.
01:34The KMT chair Eric Zhu is now urging local governments to take legal action against the central government.
01:56From the legislature to the cabinet to now local governments, fractures over the budget are showing even more cracks,
02:20ones that threaten to split ruling and opposition parties even further.
02:24Patrick Chen and Leslie Liao for Taiwan Plus.

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