Taiwan's budget fiasco in context - Taipei Times

Using a broader definition of political deadlock, Northern Ireland's devolved government was once unable to form a power-sharing administration for three years — or more than 1,000 days — from 2017 to 2020. During that period, budgetary matters were handled by the UK Parliament instead.

Following its general election in 2010, Belgium took 541 days to form a permanent government, which is the world record for a deadlock in government-formation during peacetime.

Iraq took just over a year to form a government following its October 2021 election.

For these general cases of political deadlocks, Taiwan's 351 days can be considered among the more extreme cases internationally.

However, considering only sovereign states — ie, excluding Northern Ireland — Taiwan would still rank third or fourth in the list of long-lasting gridlocks. Its situation can hardly be called an ordinary legislative delay.

Narrowing the scope to parliamentary-budgetary battles, Taiwan's case becomes even more exceptional. A US federal government shutdown last year lasted 43 days, causing interruptions to government employees' pay, disruptions to air transportation and delays in the release of government data. When the Australian Senate blocked the 1975 supply bill, it triggered a constitutional crisis that led to the governor-general dismissing the prime minister after about one month. In 2020, Israel's Knesset failed to pass its general budget by the final extended deadline, resulting in its dissolution and a new election as required by law.

Spain provides a long-term example comparable to Taiwan's situation. Unable to pass a new annual budget through its parliament, Spain's 2018 budget remained in effect through 2020. The 2023 budget was also carried over for three consecutive years when the minority government was unable to secure sufficient support.

Like Spain, Taiwan also allows the previous years' budget to remain in effect in the event of a deadlock, so it has not experienced the kind of large-scale shutdown as the US. Nevertheless, the fact that government agencies in Taiwan can pay salaries and provide services does not mean that there is no loss in governance. New programs, public infrastructure, social welfare, defense procurement and the development of the emerging drone industry all require authorization under the new fiscal year's budget.

What matters is not whether Taiwan's budget deadlock ranked third, fourth or fifth globally, but the failure in normal democratic oversight that led to 351 days of delays. It is a case sure to become the subject of international ridicule.

The legislature has the power to cut budgets and freeze funds, and the responsibility to demand explanations from the executive branch, but if there is a lack of clear deadlines, transparency of reasoning and functional mechanisms for negotiation while exercising oversight, budgetary power can be transformed from a tool of checks and balances into a political weapon to paralyze the government.

The passage of the general budget after its third reading does not mean the crisis has been completely resolved. Rather, it is the starting point for institutional reform.

The Legislative Yuan should establish deadlines for referring the general budget to committee and for voting on it. Proposals to cut or freeze funding must disclose their fiscal impact, and negotiations between the ruling and opposition camps should make their points of dispute and alternative proposals public.

Taiwan has used 351 days to achieve an international-level record that is hardly worth celebrating. The next step should not be a two-way struggle over competing narratives of responsibility, but ensuring that the same kind of governance failure does not become the new normal in the nation's politics.

Edwin Yang is an associate professor at National Taiwan Normal University and chairman of the Central Taiwan Association of University Professors.

Translated by Gilda Knox Streader