Cabinet releases budget details for next fiscal year

The Executive Yuan yesterday tentatively approved the central government's budget for the next fiscal year.

According to the budget bill, projected expenditures are NT$1.57 trillion, down NT$1.2 billion from the current fiscal year. If projected revenue of NT$1.299 trillion is realized, there would be a deficit of NT$271 billion.

National defense would be the top spending item, at NT$261.6 billion, up NT$600 million from this year. Spending on education, at NT$192 billion, is almost unchanged.

Spending on the six-year national development project is expected to be NT$156.8 billion.

The budget bill will proceed to the Legislative Yuan for further review and final approval when the legislative body reconvenes in September.

According to Lin Chuan (林全), head of the Directorate General of Budget, Accounting and Statistic, the government can cover most of the deficit, all but NT$35.2 billion, by issuing bonds and selling property.

"We don't rule out the possibility of further cutting miscellaneous spending, such as travel expenses, overtime pay and maintenance fees, if all the other measures fail to raise NT$35.2 billion to make up the shortfall," he said.

Lin added that the NT$1.2 billion decrease in projected expenditures was a result of the decline in estimated revenue.

"Tax revenue has decreased by nearly 40 percent, or NT$111 billion, compared to last year," Lin said. "The shortfall in personal and business income is most likely a result of last year's economic recession, factory closures, rising unemployment and tax-cutting measures, as well as compensation for the victims of natural disaster," he said.