The government will start issuing subsidies to senior citizens in July of this year and aims to implement a full state pension program within four years, President-elect Chen Shui-bian
A national pension program had been scheduled by the outgoing government for implementation next year but was put on hold for budgetary reasons after the 921 Earthquake.
"This July 1st, I will implement a ... policy of welfare subsidies to the elderly," Chen told a group of social welfare organizations yesterday.
Chen said that senior citizens over the age of 65 and not in receipt of other welfare payments would receive a monthly stipend of NT$3,000.
"This time," the president-elect promised, "the check will not bounce."
The proposal is part of Chen's "3-3-3 family welfare program," which includes free medical care for children under three years old and a preferential interest rate on housing loans for first-time home buyers.
However, Finance Minister-designate Shea Jia-dong
The Council for Economic Planning and Development (CEPD) has estimated that about 340,000 senior citizens will be eligible for the allowance at a projected cost of around NT$6.1 billion by the end of the year.
According to the United Evening News, the monthly subsidy to senior citizens is expected to cost NT$8 billion over the later half of this year.
Questions remain as to how the pension plan might be financed.
The outgoing government had to shelve its much-heralded pension plan in order to redirect funds towards reconstruction efforts in the aftermath of last September's devastating earthquake.
The issue was resurrected last November only to be frozen once again when the government claimed it lacked funds.
At the meeting yesterday, Chen also promised to institutionalize Taiwan's social welfare system by drafting a Basic Welfare Law within two years and issuing a policy white paper.
On the financial ills of the National Health Insurance Program (NHIP), Chen said he would adopt a "first give, then take" policy, in which emphasis would be put on the more efficient use of resources before consideration was given to raising the monthly NHIP fee.
"We will reduce the waste of resources at hospitals rather than dig into citizen's pockets," Chen said.
The national health program ran a deficit of NT$20 billion in 1999 -- up 26 percent, or NT$4.15 billion, from the previous year, according to the program's critics.
"To raise the public's financial burden before they have even benefitted from their social welfare rights is not what a modern government is supposed to do," Chen said.
The welfare organizations asked Chen to create a new social welfare ministry in the Cabinet, but Chen remained reserved on the issue.
In related news, Chen reportedly took time out of his official schedule to pay a courtesy call on Premier-designate Tang Fei
The subject of the half-hour meeting -- their first since Tang was re-admitted to hospital last week -- was believed to have concentrated on developments in the new government, but officials remained mum on the issue.
Chen also reportedly met in private yesterday with a number of other members of his incoming cabinet.
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