Taipei: Premier Cho Jung-tai announced that the Cabinet has decided not to countersign the amendments to the local revenue-sharing law passed by the Legislative Yuan last month. Speaking with reporters, Cho stated that the decision was made in accordance with the Republic of China (ROC) Constitution, emphasizing that the move aims to safeguard constitutional integrity.
According to Focus Taiwan, the Constitution requires the President to promulgate laws and issue mandates with the counter-signature of the head of the Executive Yuan or with the counter-signatures of both the head of the Executive Yuan and ministers or chairpersons of commissions concerned. Although this marks the first instance where the Cabinet has refused to countersign legislation, the Democratic Progressive Party (DPP) government maintains that the decision does not contravene constitutional guidelines.
The announcement follows the Legislative Yuan’s rejection of a Cabinet request to reconsider the approved amendments. The opposition Kuomintang (KMT), the Taiwan People’s Party (TPP), and independent lawmakers, who together hold a majority in the 113-seat Legislative Yuan, had dismissed the request on December 5. The amendments propose an increased share of central government revenue for local governments annually.
The Cabinet contends that these amendments would impose a financial burden on the central government, potentially adding NT$264.6 billion (US$8.43 billion) in debt next year, surpassing the annual borrowing cap of 15 percent of total expenditure. However, this claim remains contentious, as the government’s 2026 general budget is still awaiting legislative approval, and the impact of the revised revenue allocation law on the national debt is debated.
The DPP caucus has pledged unwavering support for any countermeasure adopted by the Cabinet against the amendments. With the Constitutional Court unable to function due to a lack of judges, President Lai Ching-te had advised Premier Cho to refrain from countersigning the amendments, which would prevent the law from taking effect even if signed by the president.
Currently, the Constitutional Court is inoperative with only eight sitting judges, falling short of the quorum of ten grand justices required for deliberations, as stipulated by a legal revision effective since January 2025.
Prior to Premier Cho’s announcement, KMT lawmaker Wu Tsung-hsien urged the government to implement the law passed by the Legislative Yuan and called on the DPP to honor the decision of the democratically elected body. Wu warned that failure to do so could endanger Taiwan’s democratic principles, likening it to a dictatorial move by President Lai.