The Cabinet yesterday approved proposed amendments to the Public Liability Law (
Speaking at a press conference yesterday, Minister of Finance Paul Chiu (
Apart from trust funds and operational funds, Chiu said "the amendments reflect the reality of the government's debt situation.''
For example, Chiu said that according to the existing system, there are many so-called "foundations," which operated outside the central government's budget, although losses on the funds still had to be made up for by subsidies from the central government.
If the amendments are passed by the legislature, Chiu said NT$130 billion per year would be the government's limit on long-term debt. As for short-term debt -- designated to be paid back within one year -- the law would allow the addition of about NT$300 billion per year to the total.
Moreover, Chiu pointed out that following the downsizing of the provincial government last July, since the central government and local authorities have taken over its operations and fiscal responsibilities, it is necessary to adjust the portion of debt over the annual budget.
Chiu said that on one hand the amendment could expand the scope of long-term county-level debt from 18 percent to 45 percent, while short-term indebtedness could shoot up from 10 percent to 30 percent.
On the other hand, however, Chiu said that in the past, local governments had no limits whatsoever on levels of short-term debt, so the amendment would in effect put limits on short-term indebtedness created by counties.
"Local commissioners can serve for only between four and eight years; if they borrow too much money during their tenure, whoever succeeds them will face major hassles,'' Chiu said.
Hale Liu (劉三錡), deputy director-general for Budget, Accounting and Statistics agreed, saying judging from the poor financial conditions faced by local administrations, it is necessary to place curbs on their short-term liability.
"During meetings with local financial chiefs yesterday, many participants said they were unable to repay short-term debts, and have asked the central government to intervene,'' Liu said.
Critics appeared to agree that taking local-level liability into account when considering national finances is the right way to go.
"They learned a lesson from the downsizing of the provincial government, when the Cabinet was handed approximately NT$80 billion of its debt. So now, the Cabinet realizes it has to restrain local administrations from extending [too much] credit,'' said Liang Chi-yuan (
Nevertheless, Liang also expressed worries that irresponsible campaign "checks" being written by presidential candidates could do little except widen government deficits.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique