Measures to Respond to Reciprocal Tariffs Inconsistent, Sneaking in Budget Items Previously Rejected by the Legislative Yuan

China Times Commentary, April 25, 2025

The Executive Yuan approved a sprawling NT$410 billion (about US$12.6 billion) special budget yesterday, ostensibly in response to opposition parties' calls to address the impact of U.S. President Donald Trump's tariff war. However, behind this move lies a political maneuver to quietly revive budget items previously cut by the legislature. From Premier Cho Jung-tai's local tours denouncing the opposition for slashing the general budget to his recent surprise announcement of submitting a report to unfreeze funds and now bundling blocked allocations into a special budget to force the opposition to swallow it whole—this strategy reeks of political scheming aimed at preserving narrative control.

In the biblical tale of King Solomon, the true mother would rather give up her child than see it split in two. However, the cabinet led by Premier Cho seems unmoved because the budget has been cut or frozen. Instead of promptly submitting reports to unfreeze funds for proper use by ministries, they delayed action, choosing instead to fan the flames of the recall campaign and use the delay as political fodder against the opposition Kuomintang (KMT) and Taiwan People's Party (TPP). Only when the pressure mounted and public criticism grew did Premier Cho finally order the submission of the unfreezing report.

To address the tariff war sparked by Trump, the opposition party proposed increasing the special budget to support domestic industries and adapt Taiwan's industrial structure. Hopes were high that the new budget would offer real relief. While the Executive Yuan increased the proposed budget from NT$88 billion (about US$2.7 billion) to NT$410 billion (about US$12.6 billion), a closer look reveals a different story. The core allocation related to tariff resilience remains at just "NT$88 billion-plus NT$5 billion," while the previously rejected NT$100 billion (about US$3.0 billion) subsidy to Taiwan Power Company (Taipower) has been discreetly included under the "social support" category. Additionally, a NT$150 billion (about US$4.6 billion) "national resilience" package has been added, though unrelated to tariffs.

Opposition lawmakers previously rejected the Taipower subsidy due to the ruling Democratic Progressive Party's (DPP) refusal to adjust its flawed energy policy, fearing it would become a financial black hole. Months later, the ruling party has not made any policy adjustments yet boldly stuffed the NT$100 billion allocation into the special budget, bypassing legislative oversight and ignoring parliament's budgetary authority.

This time, the cabinet has categorized subsidies to Taipower, labor, and health insurance under "social support," a move that appears both guilty and deceptive. Out of the NT$167 billion (about US$5.1 billion) in "social support," NT$100 billion goes to Taipower, NT$20 billion (about US$614 million) to health insurance, and only NT$47 billion (about US$1.4 billion) is left for marginalized groups—token support at best, serving mainly to cover the controversial subsidies. This underscores how desperate the DPP is to push through the Taipower funds, avoiding a politically damaging hike in electricity rates.

As for the NT$150 billion (about US$4.6 billion) allocated for "national resilience," it has no direct relation to the tariff war. If the government is serious about such a plan, then it should propose a dedicated special statute and submit a comprehensive report to the legislature for review rather than riding on the coattails of an unrelated crisis and pushing through a blank-check authorization.

Since taking office, Premier Cho has repeatedly blamed failed proposals on the opposition, avoiding all political responsibility. Now, he's using the external pressure of the tariff crisis as an excuse to bypass regular budgetary scrutiny. With the cancellation of the promised cash handouts, the opposition must stay vigilant and continue its oversight of public finances.

From: https://www.chinatimes.com/newspapers/20250425000696-260118?chdtv
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