Task force to address budget law

The Cabinet set up a seven-person task force yesterday that will propose within three months new changes to the nation's budget allocation law.

Cabinet officials said the proposed changes would introduce a more "reasonable and fair" formula for the allocation of central government funds. The ultimate goal is to allow local governments greater financial and administrative autonomy, officials said.

"No matter what the new changes are, it's a promise that local governments -- including Taipei and Kaohsiung cities -- will receive more government funding than they did under the old law," Chuang Shuo-han (莊碩漢), Cabinet spokesman, quoted Premier Yu Shyi-kun as saying yesterday. Chuang made the remarks at the Cabinet's weekly affairs meeting.

The legislature on Tuesday failed to override a Cabinet motion to void recently passed amendments to the Law Governing the Allocation of Government Revenues and Expenditures.

Taipei Mayor Ma Ying-jeou (馬英九), who had proposed the funding revisions to his KMT cohorts in the previous legislature, had proposed the earlier changes, which would have given local governments an estimated NT$54.3 billion from central government coffers annually.

Officials earlier said Ma's plan would shift NT$150 billion from the central government to local governments, but that estimate was later revised.

While 103 lawmakers supported the Cabinet's motion to void the changes, 109 lawmakers from the opposition alliance voted against it. But that was four votes less than needed to quash the DPP government's request.

The Constitution mandates that half of the 225-member legislative body, or 113 lawmakers, is needed to reject a veto motion proposed by the Cabinet. Of the 225 lawmakers, 213 took part in Tuesday's vote, which was conducted by open ballot. A KMT lawmaker representing Yunlin County cast an invalid ballot while seven others abstained. The remaining five took a leave of absence.

Ma was a no-show at a Cabinet meeting yesterday to discuss the budget allocation law, nor did his representative make any comments during the gathering, Chuang said.

The spokesman said the seven-person panel will consult local governments, legislative caucuses and financial experts in the formation of its proposal.

"We hope to hammer out the time table within 30 to 45 days and propose the draft amendments in early May," Chuang said.

Vice Premier Lin Hsin-yi (林信義), who is also the deputy executive director of the Government Reform Committee that is overseeing the streamlining of the nation's government, will head the seven-person task force.

The other members are Lee Yung-san (李庸三), minister of finance; Lin Chuan (林全), head of the Directorate General of Budget, Accounting and Statistics; Yu Cheng-hsien (余政憲), minister of the interior; Lin Chia-cheng (林嘉誠), director of the Research, Development and Evaluation Commission; Lee Yi-yang (李逸洋), head of the Central Personnel Administration; and Hsu Chih-hsiung (許志雄), minister without portfolio.

Four basic principles were set down as guidelines for the new budget allocation amendments, Chuang said.

First, the changes must allow local governments to enjoy greater autonomy when its comes to their finances, authority and manpower.

Second, the formation of the new allocation formula should reflect the trend set by other democratic countries.