The Ministry of the Interior said yesterday that it would once again push for NT$3,000 payouts to elderly citizens and free medical care for children under three -- key elements of President Chen Shui-bian's
Bringing the 3-3-3 policy up is a smart political move by the government. After all, its major handicap is that any legislation that is likely to make it popular is blocked by the opposition in the legislature for just that reason. And then the opposition mocks Chen for failing to come through on his election promises. High time then that the government located a popular policy and used every means at its disposal to show up the legislature's obstructionist disregard for the concerns of average Taiwanese for what it is.
But is the 3-3-3 policy the right choice? First, even if the legislature was more pliant, the policy would be extremely difficult to finance. Taiwan is in the middle of an economic slowdown, the government is in straitened financial circumstances as tax revenues shrink drastically. The Executive Yuan faces a shortfall of more than NT$100 billion for its NT$810 billion public infrastructure package. Chen has promised NT$5 billion for R&D in the biotech industry. Funds for the military's massive weapons purchases have yet to be worked out. Chen's welfare programs for children and the elderly will cost NT$17.8 billion. Where is all this money going to come from?
For years the KMT government was able to play a shell game with finances, borrowing money from party-owned corporations and top business leaders. The DPP government does not have such resources, nor should it. It is time Taiwan's budget was based on fiscal realities.
Unfortunately, those realities are that money is tight. So even if there is money for more social spending, are these elements of the 3-3-3 program the best way to spend it?
Given the state of the economy and rising unemployment, the government might be better to spend what it has on enlarging unemployment benefits and vocational training programs. It was clear after the legislature killed the 3-3-3 program last year that a national consensus was already forming that 3-3-3 should be replaced by an all-round national pension program. Any effort now by the interior ministry to delink the two programs will inevitably lead to more disputes.
Payouts for elderly citizens and medical subsidies for children have been banner issues in every election over the last decade. Certainly they would be popular. But it is hard to think that now is the ideal time for their introduction. So the ministry's move looks like a political stunt to embarrass the opposition. All well and good except that, given the likelihood that the DPP will still have to work with the opposition after the legislative elections -- in which no party is expected to get a majority -- is it a good idea to invest this topic with the rancor that will inevitably arise? And remember, Chen has three more years to run; there is no need to rush to make good on all his campaign promises. For a majority of the public, economic recovery and lower unemployment are the most pressing priorities.
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