(Reuters)
TAIPEI, Dec 23 – 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.
The legislation will “seriously weaken the central government’s financing,” Finance Minister Chuang Tsui-yun said at a media briefing on Monday, adding the government might need to increase debt-financing.
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, the Directorate General of Budget, Accounting and Statistics said.
