The Legislative Yuan yesterday on third reading passed the central government budget for this year, cutting 6.6 percent from the Executive Yuan’s proposed expenditure — the largest in history.
The budget proposal, which the Cabinet approved in August last year, set government spending at NT$3.1325 trillion (US$95.6 billion), with projected revenues of NT$3.1534 trillion — both record highs — working out to a surplus of NT$20.9 billion.
On Friday last week, the opposition-led legislature voted to cut NT$93.98 billion from the budget’s general provisions.
Photo: Liao Chen-huei, Taipei Times
During a 20-hour continuous session from Monday until yesterday morning, they continued to slash the budgets of government agencies, bringing the total budget cuts to about NT$207.5 billion.
Cuts from general provisions include a 10 percent reduction in water and electricity fees, and 60 percent on special expenditures.
Special expenses for the Executive Yuan, the Mainland Affairs Council, the Council of Indigenous Peoples, the National Communications Commission, the Control Yuan, and the ministries of the interior, agriculture, digital affairs, justice, civil service and labor were completely eliminated.
Photo: Liao Chen-huei, Taipei Times
There would also be a 3 percent cut on military equipment and facilities.
Media policy and promotion expenses would be uniformly cut by 60 percent, unless otherwise specified.
More controversial proposals include a 70 percent freeze on the Executive Yuan’s operating expenses, a 50 percent cut and 30 percent freeze on the Control Yuan’s operating expenses, a 50 percent freeze on the Ministry of National Defense’s submarine budget and a 50 percent freeze on the Ministry of Foreign Affairs’ (MOFA) operating expenses.
Photo: Lin Cheng-kun, Taipei Times
While the opposition defended the reductions, saying they were seeking to stop wasteful spending, Premier Cho Jung-tai (卓榮泰) at press conference yesterday accused the opposition parties of “indiscriminately cutting budget items” in an attempt to disrupt the political operations of the Executive Yuan.
The proposed central government budget includes new items such as NT$79.8 billion for public construction, NT$41.5 billion for national defense expenditure, NT$36.6 billion for a National Health Insurance financial assistance program, NT$6 billion to improve the medical industry, NT$4 billion for a national cancer prevention program, NT$20 billion for public housing, NT$13.6 billion for national pension, NT$12.6 billion for National Science and Technology Council research projects, NT$5.3 billion for local teaching facilities and NT$4.9 billion for childcare services for children aged two to six, Cho said.
There is also an additional NT$2.2 billion for salary increases for public servants and military personnel that needs to be allocated, he added.
It is uncertain when the more than NT$260 billion frozen funds would be unlocked, which would delay many national projects and policies that are scheduled to start at the beginning of the year, Cho said.
Freezing 50 percent of the defense ministry’s submarine budget would undermine international confidence in Taiwan’s resolve to defend itself, he said.
Freezing 50 percent of MOFA’s operational budget would halt half of its activities at a time when Taiwanese diplomacy must remain strong to combat Chinese pressure, he said.
Separately, Bureau of Consular Affairs Deputy Director-General Chen Shang-yu (陳尚友) said the legislature’s 10 percent cut of administrative fees across all agencies — including about NT$120 million for the bureau — might affect passport issuance from October.
The bureau estimates that 2.05 million to 2.09 million new passports would be issued this year, but after the budget cut, the remaining funds would only be enough to issue about 1.85 million passports, so there might be difficulty issuing new ones from October, he said.
He also reminded the public to check their passport validity date if they plan to travel during the Lunar New Year holiday as consular offices would be closed from Saturday to Feb. 2.
People who need to renew their passport must apply before tomorrow to receive it on Friday.
Additional reporting by Chen Yu-fu, Lee I-chia and AFP
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