Taiwan's Budget Standoff: A Call for Harmony Amid Political Divide

Taiwanese President Lai Ching-te seeks unity between the ruling party and opposition amid a conflict over budget cuts. The opposition's slashing of T$207.6 billion from government spending, impacting defense funds, raises concerns as Taiwan navigates its relationship with the new U.S. administration.

Taiwanese President Lai Ching-te has issued a plea for political harmony amid ongoing budget disputes, as conveyed in his Lunar New Year message. This call for unity comes in the backdrop of the opposition party wielding power over spending decisions following the Democratic Progressive Party's parliamentary loss, despite Lai's presidential victory last year.

The opposition's decision to slash T$207.6 billion, 6.6% of the proposed central government spending, has created a tense political atmosphere. Premier Cho Jung-tai criticized these cuts as "suicidal," particularly highlighting the hindrance to defense capabilities with T$90 billion frozen. This scenario is poised to influence Taiwan's strategic defense relationship with the United States, especially given potential conflicts with the new Biden administration.

Lai remains optimistic about fostering national unity without directly addressing the budget rift in his message. However, U.S. statements express a reserved stance, prioritizing peace and stability across the Taiwan Strait while reaffirming consistent support through the Taiwan Relations Act.

(With inputs from agencies.)