TAIPEI (TVBS News) — In a significant political showdown, opposition legislators in Taiwan's Legislative Yuan (立法院) successfully thwarted an Executive Yuan (行政院) attempt to veto controversial changes to the "Act Governing the Allocation of Government Revenues and Expenditures" (財政收支劃分法) on Wednesday (March 12).
The Kuomintang (KMT, 國民黨) and Taiwan People Party (TPP, 民眾黨) formed a powerful alliance to defeat the veto proposal, ensuring the December amendments remain intact despite fierce government resistance. At the heart of this high-stakes fiscal dispute lies a Dec. 20 amendment that dramatically reshapes Taiwan's tax allocation framework. The Executive Yuan has strongly opposed these changes, warning they fundamentally disrupt governance capabilities and overturn the established fiscal structure.
According to alarming figures from the Ministry of Finance (MOF, 財政部), the amended law would force the central government to relinquish billions financial allocation. Government officials have criticized the revision as particularly problematic because it substantially increases local governments' financial autonomy while simultaneously restricting the central government's ability to adjust subsidies.
The Executive Yuan raised additional red flags about the amendment's potential to widen the already concerning urban-rural divide — an outcome that would directly contradict the stated legislative intent. Officials also highlighted troubling ambiguities in the revised law's language and provisions. Further complicating matters, government representatives warned that the amendment failed to include adequate implementation timelines, potentially throwing budget maintenance and execution into chaos across all government levels.
The contentious debate reached its climax on Monday when the Legislative Yuan summoned Premier Cho Jung-tai (卓榮泰) and ministry officials to address questions regarding both the Central Government General Budget and the government's unsuccessful veto attempt of the revenue allocation act. The defeated veto represents a significant political setback for the administration and sets the stage for continued fiscal battles as Taiwan's government branches navigate their new financial reality.