Budget for development of tech sector to increase

The government plans to raise spending on technology development next year by raising its budget for the sector by nearly 20 percent, a Chinese-language newspaper reported yesterday, citing Premier Frank Hsieh (謝長廷).

The budget for the Ministry of Economic Affairs to boost the nation's technology sector next year will be increased to NT$84.3 billion, up from NT$70.4 billion this year, the report said, citing Hsieh, who made the remarks after a Cabinet budget meeting on Monday.

The move is to push technology research and development spending to account for 3 percent of the GDP as President Chen Shui-bian (陳水扁) pledged, according to the report.

The government's total budget for 2006 will be cut by 0.8 percent to about NT$1.6 trillion in an effort to narrow the nation's widening deficit, which is estimated to increase to NT$337.3 billion this year, from an estimated NT$304 billion last year, the report said.

The final budget bill needs to be reviewed and approved by the legislature by the end of the year.

Minister of Economic Affairs Ho Mei-yueh (何美玥), who also attended the meeting, is delighted over the budget increase, saying the money will be devoted to various key industries including the auto, digital content, telecommunications and biochemical industries, the report said.

The budget in technology development proposed by the ministry was cut by NT$4 billion by the legislature this year and has affected the ministry's progress in attracting foreign investors, Ho said. With the budget, Ho said the ministry can provide incentives for companies and create more investment, about triple of the spending, in Taiwan, the report said.