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Premier Cho declines to sign fiscal allocation law changes

Reporter TVBS News Staff
Release time:2025/12/15 16:30
Last update time:2025/12/15 17:20
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Taiwan premier sets precedent by blocking fiscal amendments (TVBS News) Premier Cho declines to sign fiscal allocation law changes
Taiwan premier sets precedent by blocking fiscal amendments (TVBS News)

TAIPEI (TVBS News) — Premier Cho Jung-tai (卓榮泰) announced Monday (Dec. 15) he will not countersign amendments to the fiscal allocation act, marking a rare constitutional standoff with Taiwan's parliament. The Legislative Yuan (立法院), Taiwan's parliament, passed the amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) on Nov. 14. Cho cited constitutional loyalty as the reason for his decision, emphasizing the amendments violate the principles of democracy and separation of powers between Taiwan's executive and legislative branches.

The premier's refusal marks the first such precedent since former Premier Hau Pei-tsun (郝柏村) declined to countersign a personnel case. Cho stated during a 3:30 p.m. press conference that the amendments infringe on the Executive Yuan's (行政院), Taiwan's cabinet, administrative powers. The premier argued the legislative process lacked transparency and substantial discussion. Cho warned that if implemented, these amendments would cause irreparable harm to national development, explaining his decision to exercise his constitutional countersignature authority, which allows the premier to block legislation by refusing to sign.

 

Executive Yuan Minister without Portfolio Lin Ming-hsin (林明昕) elaborated on the constitutional violations, noting the amendments would increase the central government's budget by NT$264.6 billion (around US$8.5 billion). Lin stated this increase would compel the Executive Yuan to breach the Public Debt Act (公債法), thereby severely undermining its administrative authority. Lin criticized the Legislative Yuan for packaging the amendments under the guise of a bill.

The Legislative Yuan previously amended the act last year with support from the opposition majority composed of the Kuomintang (KMT, 國民黨), Taiwan's main opposition party, and Taiwan People's Party (TPP, 民眾黨) caucus. The earlier amendments required the central government to allocate NT$416.5 billion (around US$13.4 billion) more in tax revenue to local governments. The Friday (Nov. 14) amendments aimed to protect local grants from central adjustments but encountered opposition from the Executive Yuan, which is controlled by the ruling Democratic Progressive Party (DPP, 民進黨).

 
Cho responded to the Kuomintang and Taiwan People's Party by suggesting they could initiate a no-confidence vote against him if they disagreed with his decision. The standoff highlights the political division between the opposition-controlled Legislative Yuan and President Lai Ching-te's administration. Cho has declined to countersign Legislative Yuan amendments eight times since taking office. ◼ (At time of reporting, US$1 equals approximately NT$31.2)
 

Taiwan Affairs

#Premier Cho Jung-tai# Act Governing the Allocation of Government Revenues and Expenditures# Legislative Yuan# Executive Yuan# constitutional loyalty# separation of powers# national development# constitutional countersignature authority# amendments to gove

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