TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said on Wednesday (Nov. 13) that revisions to the government spending act proposed by the KMT caucus would cause a major funding gap for the central government if passed.

Lai, also the DPP chair, spoke at a party standing committee meeting on Wednesday (Nov. 13), per CNA. He said if the KMT’s proposed amendments are passed NT$660 billion (US$20.29 billion) will be allocated to local governments based on the current budget.

Lai said allocating this much money may mean the central government does not have enough for national defense, diplomacy, and major infrastructure projects. He also warned there may be funding shortfalls if natural disasters occur in the future.

Lai added that if the NT$660 billion is allocated, local governments may lack the staff to use it all. He said this could lead to overspending and waste, and for this reason, the current version of the government spending act is ideal.

The KMT has said that the central government is allocated 75% of the state’s financial resources, though Lai said the real amount is less than this. He said when central government subsidies paid to local governments are considered the figure is closer to 70%.

Lai said if more resources are allocated to local governments, the responsibility for services that have been assumed by the central government over the years should be returned to the local level. He said this includes schools, hospitals, and other public institutions.

Members of the KMT caucus have criticized Lai for proposing changes to the government spending act when he was Tainan mayor and opposing them as president. Lai said he discussed the law many times when he was mayor and premier.

Lai said a draft revision to the government spending act was drafted when he was premier that was not submitted to the legislature for review because of concerns about funding shortfalls. He said the central government instead directly allocated a further NT$50 billion to local governments.

A preliminary review of the proposed changes was completed on Nov. 6 at a meeting of the legislature's Finance Committee. DPP and KMT legislators held a committee meeting on Wednesday according to standard procedures after earlier sessions broke down due to disagreements over the amendments.

Wednesday's meeting focused on progressing government budget bills and amendments to tax regulations.