The Cabinet in its 2002 budget proposal has over-estimated the nation's revenue and should trim the forecast by NT$90.7 billion -- or 5.6 percent of the total budget -- opposition lawmakers said yesterday.
The government anticipates taking in NT$1.34 trillion in revenue next year, but opposition lawmakers say the figure is too high and should be pared -- a move that would force the government to scale back its spending plans.
Lawmakers yesterday described the Cabinet's estimate of government revenue next year as "seriously padded."
The criticism by opposition lawmakers represents a new line of attack on the Cabinet's proposed budget.
After KMT lawmakers proposed cutting social-welfare programs earlier this year, the DPP used the issue successfully against them in the legislative elections campaign.
Now, opposition lawmakers are reluctant to propose large spending cuts, especially to programs popular with the public.
But by focusing their attention on the other side of the nation's balance sheet -- the country's revenue -- the opposition calculates that by lowering income projections it can force the DPP government to make politically sensitive cuts to its own programs.
In addition, opposition lawmakers yesterday proposed spending cuts ranging from 2 percent to 20 percent on a number of items including personnel, overseas fact-finding trips, sub-contracting costs, subsidies and rental expenses.
The decisions were made in negotiations held by the majority opposition alliance, which will continue to control the current legislature until the middle of next month.
Though legislative committees are where debates over budget bills take place, decisions reached in inter-party negotiations usually guide the second and final readings.
In response to the opposition's move yesterday, Premier Chang Chun-hsiung (張俊雄) said the Cabinet would seek to win their support for the government's proposed budget bill. He said shrinking the budget's size could endanger the nation's economic growth.
According to the Cabinet's proposed budget, spending for next year is projected to reach NT$1.6 trillion. With forecasted income reaching just NT$1.34 trillion, the government plans to issue bonds to close the gap.
If there's no surplus left over from this year, trimming forecasted revenue for next year would likely result in an equal-sized cut in spending.
KMT legislative caucus whip Lee Cheng-chong (李正宗) and PFP legislative caucus convener Chou Hsi-wei (周錫瑋) said the adjustment to the income forecast was necessary because many revenue items -- such as customs duties and income taxes -- were exaggerated.
Tsai Huang-liang (蔡煌瑯), head of the DPP legislative caucus, said the party was shut out of negotiations yesterday and that the opposition's move was unacceptable.
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