Taipei City and the four special municipalities that came into being on Saturday could turn into a disaster for the central and local governments if underlying financial problems are not properly addressed, experts told a forum on the financial aspects of the five megacities yesterday.
Peng Pai-hsien (彭百顯), a professor of finance at Kainan University, told a panel organized by the Taiwan Brain Trust think tank in Taipei that the five special municipalities face an immediate shortfall of NT$718.5 billion (US$24.27 billion) — which would climb to NT$803.4 billion if potential debt were counted — while the central government was faring no better, with a potential debt of NT$21 trillion.
“Mayors of the five special municipalities will no doubt have bigger cities to govern, more resources at their disposal, more manpower to use and better benefits, but they also face larger debts,” Peng said.
“The change of the city structure is bound to compound the financial situation of the state and local governments, making the well-off cities better-off and badly-off counties and cities worse-off,” Peng said.
If the legislature passes revisions to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) proposed by the Ministry of Finance, Peng said, the state treasury would allocate NT$98.2 billion to local governments, of which 62 percent, or NT$60.7 billion, would go to the five special municipalities. However, such amounts still cannot meet the needs of the five megacities, he said.
The Executive Yuan has also sought amendments to the Public Debt Act (公債法), which Peng said would allow local governments to inflate their budgets by borrowing too much.
Peng urged each administration to complete sustainable planning of administrative zoning during their mayors’ first four-year term. To avoid a potential financial crisis, he proposed the administrations put more emphasis on restructuring the financial system than increasing the source of revenues.
Taiwan Brain Trust president Lo Chih-cheng (羅致政) said the central government must take advantage of this opportunity to decentralize more money and power to local governments.
Aside from the main direction of the state economy and domestic affairs, Lo said the main duties of the central government should be national defense, foreign affairs and cross-strait relations. If the central government wishes to play a more dominant role, it should focus on providing better services.
To reach that goal, Lo said it should consider whether it is necessary to raise taxes, taking into consideration the current financial situation.
Su Jain-rong (蘇建榮), a professor of finance at National Taipei University, said that unless the central government raised taxes or distributed most of its tax revenues to local governments, it was unlikely to effectively resolve the financial problems of the five special municipalities, regardless of the amendments made to the Act Governing the Allocation of Government Revenues and Expenditures.
While the legislature is still revising the bill, Su said it should consider the differences between local governments in terms of population, economy and governance. He also urged the executive branch to let local governments have a say in the usage of the tax redistribution fund if parts of the business tax were added to the fund.
To stabilize local governments’ sources of income, the central government could establish a “rainy day fund,” he said.
He also proposed the formation of a disbursement committee of experts and local government representatives who would decide how the tax distribution fund is dispensed.
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
OBJECTS AT SEA: Satellites with synthetic-aperture radar could aid in the detection of small Chinese boats attempting to illegally enter Taiwan, the space agency head said Taiwan aims to send the nation’s first low Earth orbit (LEO) satellite into space in 2027, while the first Formosat-8 and Formosat-9 spacecraft are to be launched in October and 2028 respectively, the National Science and Technology Council said yesterday. The council laid out its space development plan in a report reviewed by members of the legislature’s Education and Culture Committee. Six LEO satellites would be produced in the initial phase, with the first one, the B5G-1A, scheduled to be launched in 2027, the council said in the report. Regarding the second satellite, the B5G-1B, the government plans to work with private contractors
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
RSS