Cabinet plans NT$16 billion for elderly welfare

The Cabinet put forth its 2002 budget proposal yesterday, which includes NT$16 billion to pay pensions to the elderly.

The pension plan was one of President Chen Shui-bian's (陳水扁) campaign promises during last year's presidential election.

If the pension proposal survives the legislature, citizens over the age of 65 would receive NT$3,000 monthly. Those who already collect government pensions or assistance would be ineligible.

Critics, however, charge that wealthy people will still be eligible as long they are not receiving government aid.

In all, the Cabinet is proposing to spend NT$1.59 trillion next year, according to Lin Chuan (林全), head of the Directorate General of Budget, Accounting and Statistics.

The government expects to take in an estimated NT$1.35 trillion in revenue next year, leaving a deficit of NT$249 billion. That compares to last year's NT$195 million budget deficit.

Anticipated revenue for next year is 2.4 percent less than this year's budget renenue, while forecast spending is 1.3 percent higher, Lin said.

The central government plans to cover the budget deficit by issuing NT$250 billion in bonds, Lin said.

Under law, no more than 15 percent of total spending can be financed with bonds, and the NT$250 billion amount approaches that limit.

Lin also said that the Cabinet has allocated NT$41.7 billion to make up for a deficit in the National Stabilization Fund, which took a beating attempting to support the nation's stock market over the last few years.

In addition, Lin said that though the government faces serious financial difficulties, a budget of NT$57 billion has been allocated to subsidize high-tech development projects -- a sum 10 percent higher than this year.

Left out of the Cabinet's budget proposal yesterday was money for a controversial plan to reissue citizen ID cards that contain fingerprints.

Lin said that due to the lack of funds, the plan would not be put into effect until next year at the earliest.

The Cabinet has also proposed NT$3 billion to help offset a NT$12 billion shortfall at the Taiwan Motor Transport Co (台汽客運), a debt obligation that was accrued before the formerly state-run enterprise was privatized earlier this year.