Lawmakers in opposition to pension plan for elderly

Opposition lawmakers are howling over the Cabinet's plan to spend NT$16 billion next year to provide NT$3,000 monthly pensions to the elderly.

Calling the pension proposal "DPP largess," the lawmakers said the plan was a ploy to win votes in the year-end legislative elections.

Legislators also said the monthly payouts could put the squeeze on national infrastructure projects.

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

"We're very worried that the spending will come at the expense of national infrastructure and economic development projects," said Lee Cheng-chong (李正宗), majority whip of the KMT legislative caucus.

Chou Hsi-wei (周錫瑋), convener of the PFP legislative caucus, said his group would not support the program unless the Cabinet comes up with a plan to reduce the government deficit.

The government plans to spend NT$1.59 trillion next year. Revenue is forecast at NT$1.35 trillion, leaving a deficit of NT$249 billion.

The Cabinet plans to issue NT$500 billion in bonds to cover the deficit and "pay down," or refinance NT$251 billion in government debt.

The stipend program targets citizens over the age of 65 who are not covered under existing welfare programs.

Those who earn more than NT$500,000 per year or hold more than NT$5 million in assets would also be excluded.

Tsai Huang-liang (蔡煌瑯), chief executive of the DPP legislative caucus, said the program was intended to benefit the welfare of Taiwan's elderly and was unrelated to the year-end elections.

Of the nation's 2 million people who are 65 years of age or older, Tsai said, an estimated 400,000 are not covered by any assistance or pension programs.