Fri, Dec 14, 2012 - Page 1 News List

No consensus yet on local government debt ceilings

By Amy Su and Mo Yan-chih  /  Staff reporters

If the city’s debt ceiling was lowered to NT$267 billion, it would cover only the city’s general budget and this year’s debt financing for public construction projects.

Hau said the ministry failed to communicate with the city government when it was drafting the amendment. However, the ministry later acknowledged its lack of understanding of Taipei’s finances. The self-redeeming public debt of Taipei’s MRT system, for example, is only 20 percent, which means 80 percent of the public debt comes from the central government. Without financial support from the central government, the fare of Taipei’s MRT would have to be increased at least three times for the city to pay off all the costs of the system.

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