The Legislature has agreed to cut the central government's budget for 2017 by 1.2%.
The Legislature reached the decision on Thursday, cutting NT$23.9 billion (US$750 million) in spending. This still left a deficit of NT$132.8 billion (US$4.2 billion). The Legislature says it will borrow money to cover some of the deficit.
The ruling and opposition camps narrowed the number of budgetary items they disagree on from nearly 5,000 to around 60. Some items, such as year-end bonuses and holiday bonuses for teachers, military personnel, and civil servants, remain controversial.
The Legislature eventually agreed to a proposal to eliminate these bonuses. That is with the exception of people who have developed job-related disabilities and people whose monthly pension is less than NT$25,000 (US$800).