Taiwan warns defence could suffer under opposition's funding laws

23/12/2024 16:21

Taiwan's cabinet warned on Monday the island's security might be at risk after opposition parties passed laws that will require cuts in government spending, including defence, at a time when China has ramped up military activity nearby.



Taiwan's opposition parties, which hold a majority in parliament, last week passed legislation to shift spending from the central government to local municipalities, a move strongly contested by the ruling Democratic Progressive Party (DPP) and thousands of protesters.



Finance Minister Chuang Tsui-yun said at a media briefing on Monday, the legislation will "seriously weaken the central government's financing," adding the government might need to increase debt-financing.



The Directorate General of Budget, Accounting and Statistics said, to meet the new funding requirements, the central government will need to cut 28% from a major section of its budget proposal for next year that included T$294.5 billion of the overall defence budget.



Taiwan President Lai Ching-te said in a post on Facebook over the weekend, he legislation could "seriously crowd out the defence budget," adding Taiwan's combat capacity might be "hit deeply".