Print

Mail

wiki links

Cabinet must push for budget: council

The Cabinet should communicate with the legislature on passing the government's general budget this year for major public projects, the Council for Economic Planning and Development said yesterday, adding that a stalled budget could endanger economic growth.

After declining 4.06 percent last year, government investment for the first quarter fell 9.35 percent to NT$62.9 billion (US$1.89 billion), as the general budget remains stalled in the legislature, the council said in a report.

"The government should expand measures to boost consumption and domestic investment and to ensure their execution so that GDP growth will hit the target of 4.6 percent this year," the council said.

The government's statistics bureau forecast that the nation's GDP growth would reach 4.3 percent this year on the back of a stronger domestic sector, with private consumption rising as the effects of the credit abuse storm subside; an improving employment market; and robust stock and real estate markets.

Private consumption is expected to grow by 2.9 percent in the first quarter and should expand by 3.2 percent for the full year, the council said, citing government statistics.

Helped by capacity expansion among high-tech manufacturers, private investment is expected to increase 1.7 percent this year, the council said.

The stock market during the first quarter improved year-on-year, with the benchmark TAIEX rising 18.3 percent to an average 7,689 points. Turnover totaled NT$2.58 trillion, up by 24.7 percent, it said.
This story has been viewed 866 times.