Executive Yuan faces scrutiny over alleged misuse of frozen budget funds

The Executive Yuan is facing intense scrutiny from the Kuomintang (KMT) over allegations that it bypassed Legislative Yuan decisions by utilizing 500 million TWD in frozen funds. The controversy stems from the 2025 fiscal year budget, where the legislature had proposed freezing 500 million TWD in unspecified funds. However, financial records show the Executive Yuan's actual expenditures reached approximately 1.49 billion TWD.

KMT officials argue that the administration circumvented the freeze by reallocating the funds into personnel expenses. Chen Yi-hsin, KMT Culture and Communications Committee Chair, criticized the move as a violation of the Budget Act, which restricts the diversion of funds into personnel costs, and called for the impeachment of Premier Cho Jung-tai. He argued that such actions undermine the legislature's constitutional power of budget oversight.

In response, Executive Yuan spokesperson Li Hui-chih stated that the actions were legal and followed proper procedures. The administration explained that because the frozen amount was not assigned to specific items, they allocated it to personnel expenses to cover mandatory staff salaries and maintain basic operations. The administration emphasized that personnel costs are statutory obligations under the Civil Servants Protection Act and that the budget has already undergone auditing by the Audit Department.