Taiwan is facing a rare political crisis after the executive branch refused to enact amendments to a government spending law passed by the opposition-controlled legislature, underscoring domestic divisions as the island confronts escalating military pressure and coercion from China.
The administration of President Lai Ching-te has said the amendments undermine fiscal sustainability and were drafted without proper consultation. Under the amendments, Taiwan’s central government would be required to allocate a larger share of its revenue to the local governments.
Lai has said that the amendments to the law, which is officially called the Act Governing the Allocation of Government Revenues and Expenditures, would force the central government to borrow up to NT$563.7 billion (about $17.9 billion) in 2026, in violation of the statutory deficit ceiling set by the island’s Public Debt Act….
Taiwan’s Political Deadlock Between Ruling Administration and Opposition
