Premier Cho: Three Constitutional and Legal Options to Address Cut in Defense Procurement Budget, Meeting National Needs

(Taipei, May 19, CNA) Regarding the Legislative Yuan's passage of the Special Act for National Defense on the 8th, which excluded commercial and commissioned procurement items, Premier Cho Jung-tai reiterated today that there are three ways to respond: a supplementary budget, proposing another special act, or other measures. However, he noted that a supplementary budget would require the right timing, and ultimately, a solution will be chosen that best meets the country's needs and complies with the Constitution and the Budget Act. On the 8th, the Legislative Yuan passed the 'Special Act for the Procurement Plan to Safeguard National Security and Enhance Asymmetrical Combat Capabilities,' with a budget ceiling of NT$780 billion, excluding commercial and commissioned procurements. This created a NT$470 billion difference from the original Executive Yuan's proposal of NT$1.25 trillion over eight years. Cho had previously stated that the three pieces of the military procurement puzzle are indispensable and that he would seek the most effective path within the spirit of the Constitution and the Budget Act. When asked if a solution has been finalized, Cho stated at the Executive Yuan's May 20 press conference today that the matter will certainly be handled under the Constitution and the Budget Act. He outlined three methods. First, to propose another special act and a special budget, which would require considerable procedure. Second, any form of supplementary budget could be made, but at an appropriate time. He pointed out the third option: to use the annual government budget. However, if the entire NT$470 billion related to commercial procurement, commissioned production, Taiwan-U.S. cooperation, and domestic defense industry development were to be covered by the government budget, it would create a crowding-out effect on the annual budget. Therefore, each of the three options has its own considerations. Cho emphasized that the final choice will be one that best meets the country's needs in terms of content, conditions, efficiency, and timeline, and will be conducted within the spirit of the Constitution and the Budget Act. This is the government's principle. Cho and Secretary-General of the Executive Yuan Chang Tun-han are scheduled to go to the Legislative Yuan at 2:30 PM today to deliver a special report on matters related to the preparation of the special budget for the first batch of letters of offer and acceptance under the 'Safeguard National Security and Enhance Asymmetrical Combat Capabilities Plan.'