Taiwan cuts half of funding for key defense project

ISTANBUL

Taiwan lawmakers cut half of the funding for a defense submarine project Tuesday alongside other major cuts in the national budget, according to Taipei-based Central News Agency.

Lawmakers agreed on a final version of the budget that amounts to NT$2.92 trillion ($89.1 billion) with a 7% cut, or NT$207.5, it said.

The original budget that was proposed in August amounted to NT$3.13, however, the ruling party and opposition lawmakers could not agree on a final version until Tuesday.

Premier Cho Jung-tai alleged that opposition parties, holding the majority in the legislature, were attempting to undermine the government by implementing substantial budget cuts.

The cuts include freezing half of the funding for defense submarines until they can attain sea acceptance tests.

The final budget cuts nearly half of the funding for the state-owned energy company.

Cho suggested the move could have an "incalculable" effect because the funds subsidize energy costs for consumers.

Taiwan's regional leader, Lai Ching-te characterized the budget as “unprecedented” in a Facebook post, and said the cuts could disrupt public services and negatively affect the “functioning” of the state.