Taiwan's opposition-controlled legislature passed the 2026 central government budget, a win for keeping the government funded but a fresh flashpoint between the opposition and the ruling party's cabinet.

• Lawmakers trimmed about NT$48 billion from the budget, a cut of just 1.7%, leaving 98.4% intact so government can keep running normally.
• KMT caucus whip Fu Kun-chi framed the small cut as goodwill, saying the opposition negotiated down from over 1,700 proposed cuts.
• He accused the cabinet of breaking promises — failing to fund pay raises for soldiers, police and civil servants after agreeing to months ago.
• The cabinet may also refuse to sign off on laws already passed, including a children's future savings account and pension reforms, deepening the standoff.
• The legislature also cleared three referendum measures: earmarking traffic fines, adding caning as a penalty, and scrapping the nuclear-free homeland policy.

Outlook: Expect continued friction over whether Premier Cho Jung-tai's cabinet will actually sign and carry out the opposition-backed laws.