Funds frozen amid clash over budget

Taiwan's cabinet said yesterday it will ask the opposition-controlled legislature to release more than $4 billion in funds frozen as part of a standoff over this year’s budget, which the government says could seriously affect their operations.

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While the Democratic Progressive Party's (DPP) Lai Ching-te won the presidency in last year's elections, the party lost its majority in parliament.

Taiwan’s main opposition party, the Kuomintang (KMT), along with the small Taiwan People’s Party (TPP), control the most seats, and earlier this year voted through sweeping cuts to 2025’s budget, saying they were targeting waste, and froze other funds saying they wanted greater oversight on spending plans.

In a statement, cabinet spokesperson Michelle Lee said the government will ask parliament to unfreeze T$138.1 billion (141 billion baht) in funds.