If special budget is needed for Middle East conflict, DGBAS: Inventory of needs approaches NT$130 billion
With escalating Middle East tensions, Taiwan's Directorate-General of Budget, Accounting and Statistics (DGBAS) is considering a special budget to address impacts on consumer prices. Estimated needs amount to nearly NT$130 billion, as the government implements various measures to curb price hikes.
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- 📰 Published: April 13, 2026 at 14:18
- 🔍 Collected: April 13, 2026 at 14:31 (12 min after Published)
- 🤖 AI Analyzed: April 13, 2026 at 15:44 (1h 12m after Collected)
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Central News Agency
(Taipei, CNA reporter Pan Tzu-yu, 13th) The Middle East conflict continues to spread, with its impact on people's livelihoods gradually emerging. Legislators inquired whether the government plans to allocate a special budget to address the impact of the Middle East conflict on consumer prices. Chen Shu-tzu, Director-General of the Directorate-General of Budget, Accounting and Statistics (DGBAS), stated that if a funding gap needs to be filled, a special budget allocated through a special act is one option. After an inventory, the required scale is approximately NT$130 billion.
The Legislative Yuan's Finance Committee today invited relevant ministries and agencies to a special report on "the medium to long-term impact and response to the Middle East conflict on energy, prices, people's livelihoods, medical supplies, and market order, and the implementation of a special budget to strengthen economic, social, and livelihood national security resilience in response to international situations."
Democratic Progressive Party (DPP) Legislator Lee Kun-cheng pointed out that previously, in response to US tariffs, the government proposed the "Special Act for Strengthening Economic, Social, and Livelihood National Security Resilience in Response to International Situations." Now, the Middle East conflict has affected all industries, and relevant ministries and agencies have implemented measures such as tax reductions, price freezes, and subsidies, all of which require funding. He questioned whether these could be covered by the special budget for strengthening resilience.
Chen Shu-tzu stated that the resilience special act currently has a reserved flexible quota of NT$25.3 billion. However, she assessed that this would not be compliant for the needs arising from the Middle East conflict, requiring amendments to the act and additional budget appropriation.
Chen Shu-tzu said that she has asked various units to compile statistics, and the required funds amount to approximately NT$129.2 billion, including the Ministry of Economic Affairs, CPC Corporation, Taiwan Power Company, Ministry of Transportation and Communications, and Ministry of Agriculture. These existing funds are "far from sufficient." If this gap needs to be filled, there are two approaches: one is to process an additional budget, but this is hampered by the main budget not yet being passed; the other is to propose a special act and allocate a special budget, estimated at around NT$130 billion.
Lee Kun-cheng inquired whether DGBAS believes there is a necessity for a special budget. Chen Shu-tzu replied that relevant departments would be asked to submit their needs, and the Executive Yuan would make a decision.
Separately, the South Korean government plans to issue high oil price support payments to alleviate the burden on the public caused by high oil and commodity prices due to the Middle East war. DPP Legislator Lee Kun-cheng and Kuomintang (KMT) Legislator Lo Ming-tsai both raised concerns about this issue and whether the Taiwanese government intends to follow suit.
National Development Council Deputy Minister Kao Hsien-kuei explained that South Korea's approach differs slightly from Taiwan's. Taiwan absorbs the oil price increase upfront through CPC Corporation to prevent its impact on consumer prices downstream. This is a key reason why the Consumer Price Index (CPI) for the first quarter of this year was only 1.23%, lower than the February forecast of 1.38%.
Kao Hsien-kuei added that prices tend to be downwardly sticky, so the government hopes to curb them from the front end rather than subsidizing affected groups after prices have risen.
Lo Ming-tsai asked how much funding would be needed if Taiwan were to distribute a NT$10,000 oil allowance per person. Chen Shu-tzu replied that, similar to a universal cash handout, it would require approximately NT$236 billion, boosting GDP by about 0.415 percentage points. However, the current government approach starts with freezing oil prices to avoid subsequent additional fiscal expenditures.
During today's meeting, both ruling and opposition legislators expressed concern about domestic prices and the impact on people's livelihoods. Taiwan People's Party (TPP) Legislator Liu Shu-bin inquired about the Central Bank's subsequent monetary policy stance. Central Bank Deputy Governor Yen Tsung-ta stated that future monetary policy adjustments would focus on domestic inflation, with a 2% CPI as the警戒線 (warning line). Additionally, international economic and financial situations also affect price changes, and these will continue to be monitored. (Edited by Pan Yi-ching) 1150413
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Central News Agency
(Taipei, CNA reporter Pan Tzu-yu, 13th) The Middle East conflict continues to spread, with its impact on people's livelihoods gradually emerging. Legislators inquired whether the government plans to allocate a special budget to address the impact of the Middle East conflict on consumer prices. Chen Shu-tzu, Director-General of the Directorate-General of Budget, Accounting and Statistics (DGBAS), stated that if a funding gap needs to be filled, a special budget allocated through a special act is one option. After an inventory, the required scale is approximately NT$130 billion.
The Legislative Yuan's Finance Committee today invited relevant ministries and agencies to a special report on "the medium to long-term impact and response to the Middle East conflict on energy, prices, people's livelihoods, medical supplies, and market order, and the implementation of a special budget to strengthen economic, social, and livelihood national security resilience in response to international situations."
Democratic Progressive Party (DPP) Legislator Lee Kun-cheng pointed out that previously, in response to US tariffs, the government proposed the "Special Act for Strengthening Economic, Social, and Livelihood National Security Resilience in Response to International Situations." Now, the Middle East conflict has affected all industries, and relevant ministries and agencies have implemented measures such as tax reductions, price freezes, and subsidies, all of which require funding. He questioned whether these could be covered by the special budget for strengthening resilience.
Chen Shu-tzu stated that the resilience special act currently has a reserved flexible quota of NT$25.3 billion. However, she assessed that this would not be compliant for the needs arising from the Middle East conflict, requiring amendments to the act and additional budget appropriation.
Chen Shu-tzu said that she has asked various units to compile statistics, and the required funds amount to approximately NT$129.2 billion, including the Ministry of Economic Affairs, CPC Corporation, Taiwan Power Company, Ministry of Transportation and Communications, and Ministry of Agriculture. These existing funds are "far from sufficient." If this gap needs to be filled, there are two approaches: one is to process an additional budget, but this is hampered by the main budget not yet being passed; the other is to propose a special act and allocate a special budget, estimated at around NT$130 billion.
Lee Kun-cheng inquired whether DGBAS believes there is a necessity for a special budget. Chen Shu-tzu replied that relevant departments would be asked to submit their needs, and the Executive Yuan would make a decision.
Separately, the South Korean government plans to issue high oil price support payments to alleviate the burden on the public caused by high oil and commodity prices due to the Middle East war. DPP Legislator Lee Kun-cheng and Kuomintang (KMT) Legislator Lo Ming-tsai both raised concerns about this issue and whether the Taiwanese government intends to follow suit.
National Development Council Deputy Minister Kao Hsien-kuei explained that South Korea's approach differs slightly from Taiwan's. Taiwan absorbs the oil price increase upfront through CPC Corporation to prevent its impact on consumer prices downstream. This is a key reason why the Consumer Price Index (CPI) for the first quarter of this year was only 1.23%, lower than the February forecast of 1.38%.
Kao Hsien-kuei added that prices tend to be downwardly sticky, so the government hopes to curb them from the front end rather than subsidizing affected groups after prices have risen.
Lo Ming-tsai asked how much funding would be needed if Taiwan were to distribute a NT$10,000 oil allowance per person. Chen Shu-tzu replied that, similar to a universal cash handout, it would require approximately NT$236 billion, boosting GDP by about 0.415 percentage points. However, the current government approach starts with freezing oil prices to avoid subsequent additional fiscal expenditures.
During today's meeting, both ruling and opposition legislators expressed concern about domestic prices and the impact on people's livelihoods. Taiwan People's Party (TPP) Legislator Liu Shu-bin inquired about the Central Bank's subsequent monetary policy stance. Central Bank Deputy Governor Yen Tsung-ta stated that future monetary policy adjustments would focus on domestic inflation, with a 2% CPI as the警戒線 (warning line). Additionally, international economic and financial situations also affect price changes, and these will continue to be monitored. (Edited by Pan Yi-ching) 1150413
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The text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.