President Lai delivers recorded address following national policy discussion with government branch leaders  

On December 15, President Lai Ching-te held a discussion on national policy with government branch leaders, following which he delivered a recorded address. In his address, the president explained the current constitutional and national policy risks to the public, indicating that the amendments to the Act Governing the Allocation of Government Revenues and Expenditures and pension counter-reform bills forced through the Legislative Yuan could lead to fiscal imbalance, earlier bankruptcy of the pension system, and the stagnation of major national policies, endangering Taiwan’s constitutional democracy and national security.

President Lai stated that he supports the decision of Premier Cho Jung-tai (卓榮泰), who in accordance with the authority granted to him by Article 37 of the Constitution, decided the same day to not countersign the amended Act Governing the Allocation of Government Revenues and Expenditures, resolutely preventing an unconstitutional and politically chaotic bill from coming into force, demonstrating his loyalty to the Constitution and his determination to safeguard the well-being of the country and all its people. The president appealed to the Legislative Yuan to immediately withdraw the controversial bills that harm the nation and violate the spirit of the Constitution.

In this new constitutional situation, President Lai reiterated that he is willing to deliver a state of the nation address to the Legislative Yuan in accordance with the provisions of Article 4, Paragraph 3 of the Additional Articles of the Constitution and the constitutional method stipulated by the Constitutional Court. He stated that to defend the constitutional order is to defend democratic Taiwan, and to maintain fiscal discipline is to maintain the lifeline of the nation. The president then invited all citizens to join him in holding this line of defense, working together for national development so that Taiwan can continue to move forward proudly on the world stage.

A translation of President Lai’s address follows:

My fellow citizens: Good evening. In recent days, there has been widespread public focus on the progress of the central government’s deliberations for next year’s general budget, as well as amendments to the Act Governing the Allocation of Government Revenues and Expenditures and pension counter-reform bills. Therefore, I specifically invited the presidents of the Executive Yuan, Legislative Yuan, and Examination Yuan to the Presidential Office this morning for a discussion.

I deeply hope that, by meeting to discuss these issues, the government branches can collectively identify a solution that adheres to the constitutional separation of powers, exercises fiscal discipline, safeguards generational justice, and ensures the nation’s sustainable development. It is rather regrettable that Legislative Yuan President Han Kuo-yu (韓國瑜) did not attend today.

As president, my duty is not just to advance national policies but, more importantly, to act in accordance with the Constitution to protect this nation’s democratic system and the present and future livelihood and prosperity of every citizen.

Therefore, in the face of the current constitutional and political situation, I must clearly explain to the nation what risks we currently confront, and how I will lead the government to safeguard our democracy and protect the rights and interests of all our people from harm.

First is the crisis of fiscal imbalance and stagnation of major national policies. Providing local governments with more resources to promote development and care for our people has always been our shared goal.

However, based on the version of the Act Governing the Allocation of Government Revenues and Expenditures rammed through by the opposition parties, once implemented, the central government would be forced to borrow up to NT$563.8 billion next year, and every year thereafter. This not only directly violates the ceiling stipulated in the Public Debt Act, but would also push the government’s finances to the brink of collapse.

This is not a simple numbers game. It means that significant national initiatives from the past few years – in long-term care, childcare, youth education, economic development, and national defense and security – would all face difficulties in advancement or even come to a halt. Furthermore, the hundreds of billions in national resources thus hollowed out each year would become unsupervised blank checks lacking specific policy objectives, distributed through chaotic allocation.

Second, pension reforms must not be reversed. The goal of the pension reform we previously pursued was singular: to ensure the sustainability of the pension system so that every generation can receive benefits. However, last Friday, pension counter-reform bills were also rammed through the legislature.

I believe we all remember when former President Ma Ying-jeou warned in 2013 that without reform, the pension system would be like a train barreling toward a cliff. Under the leadership of former President Tsai Ing-wen, we collectively managed to put that train back on track in 2018. Yet, that train has now been rerouted and is once again charging toward the precipice.

My fellow citizens, were these pension counter-reform bills to be implemented, our pension system would go bankrupt earlier than projected. The nation would have to pay around an additional NT$700 billion to fill the shortfall in the pension fund. That means each citizen on average would pay an additional NT$30,000. And yet by doing so, they would sacrifice their own Labor Insurance, Farmers’ Health Insurance, and National Pension annuities, as well as many major welfare policies.

Third, legislative abuses pose unprecedented threats to the nation and citizens. In addition to the Act Governing the Allocation of Government Revenues and Expenditures and pension counter-reform bills, even more worrying is that the legislature is currently forcing a series of amendments that constitute legislative abuses, posing a major threat to the nation and citizens.

This series of amendments lacks sufficient discussion among the ruling and opposition parties and even violates constitutional principles.

In a little more than two weeks, it will be 2026. And yet, as we see, deliberation on the central government’s proposed general budget for the next fiscal year has not even begun. 

Tensions in the Indo-Pacific have risen recently as a result of the further escalation of unilateral threats from China. Despite this, the special defense budget – crucial for upgrading our combat capabilities – has been deliberately shelved. Major government policies and the strengthening of national security are facing stagnation.

At this moment, when global supply chains are being restructured to eliminate “red risk,” the opposition parties are forcing through amendments to the Offshore Islands Development Act. By doing that, they intend to allow Chinese capital and products to be “origin laundered” through our offshore islands. Furthermore, they have proposed amendments to the Nationality Act that would exempt new immigrants from China who hold public office from the obligation of swearing sole allegiance to our nation.

The public rejects corruption and expects clean government. Yet the opposition parties are pushing for amendments that would exempt corruption cases involving NT$50,000 or less from criminal liability and decriminalize the embezzlement of assistant fees. Furthermore, they are even introducing legislation to divert budgets for public-funded assistants directly into the pockets of legislators themselves, which would make it impossible to safeguard the rights and interests of those assistants. 

Furthermore, electoral fairness is vital for a functioning democracy. Yet, the opposition parties are forcefully advancing legislation, including amendments to the Presidential and Vice Presidential Election and Recall Act, in an attempt to legalize vote-buying behavior in primaries. Also, amendments to the Public Officials Election and Recall Act would allow criminals under suspended sentences to run for office. All this intends to manipulate the direction of national governance.

My fellow citizens, this series of legislative abuses currently being fast-tracked sends a dangerous message. If these pieces of legislation are passed and become law, Taiwan’s security, democracy, and economy, the rights and interests of our citizens, and social justice will all be plunged into immediate crisis. This is not the expression of democracy, but its erosion. But more than that, it is steering Taiwan toward the brink of legislative abuse and opposition dictatorship.

Over the past nine years, the government has always maintained fiscal discipline, making sure that every dollar is well spent. Due to our commitment to reform and our efforts to maintain fiscal stability, we have experienced significant economic development. Since 2017, we have had a budgetary surplus for eight consecutive years, and in 2019, we made the NT$22,000 minimum monthly wage a thing of the past. We have increased the number of long-term care service sites from more than 700 to over 15,000. We have also promoted transportation infrastructure, implementation of national childcare for ages 0–6, and the provision of full tuition waivers for senior high school and vocational high school students, along with subsidies for tuition and fees for students at private universities and colleges, as well as rent subsidies.

These achievements are based on sound finances and precise calculations meant to help lay a solid foundation for the next generation – not squander the future for political interests. But all of these accomplishments face significant risks.

My fellow citizens, Taiwan has become a key hub for the global democratic community, and our stability affects the whole world. We cannot allow laws riddled with errors to weaken Taiwan’s competitiveness, and we cannot allow the international community to lose confidence in Taiwan.

As president, and in this constitutional moment, I must uphold the constitutional system, safeguard the nation, and protect our people.

The Act Governing the Allocation of Government Revenues and Expenditures forced through the Legislative Yuan seriously and immediately undermines the constitutional separation of powers, national finances, and the rights and interests of our people. Today, Premier Cho, in accordance with the authority granted to him by Article 37 of the Constitution, decided to not countersign that bill, resolutely preventing an unconstitutional and politically chaotic bill from coming into force, demonstrating his loyalty to the Constitution and his determination to safeguard the well-being of the country and all our people. I support this decision.

Here, I would also like to make a most sincere yet stern appeal to the Legislative Yuan: Please immediately withdraw these controversial bills that harm the nation and violate the spirit of the Constitution.

In this new constitutional situation, I want to reiterate that I am willing to deliver a state of the nation address to the Legislative Yuan in accordance with the provisions of Article 4, Paragraph 3 of the Additional Articles of the Constitution and the constitutional method stipulated by the Constitutional Court.

My fellow citizens, we cannot allow our hard-won constitutional democracy to be destroyed, our hard-earned reforms to be reversed, or our fiscal discipline to be ruined. This is not for the benefit of any political party, but for the very survival of Taiwan, and for the future of our children and grandchildren.

To defend the constitutional order is to defend democratic Taiwan; to maintain fiscal discipline is to maintain the lifeline of the nation.

I want to invite all citizens to join me in holding this line of defense. Let us all work together for national development, so that Taiwan can continue to move forward proudly on the world stage.