Opposition lawmakers yesterday threatened to return the 2003 budget plan to the Cabinet, saying they doubt the amount reserved for economic development can turn the economy around as the administration has boasted.
Meanwhile, the legislature's budget center, which is due to unveil its evaluation in two weeks, said the spending contains blatant flaws.
"The money earmarked for boosting the economy constitutes only 14.5 percent of total spending, down 22 percent from this year," said PFP lawmaker Thomas Lee (
Total central government expenditure for next year is estimated at NT$1.57 trillion, down NT$1.2 billion from the current year. The government expects to collect NT$1.299 trillion in tax revenues for the same period, leaving a deficit of NT$271 billion that will be covered mainly by public bonds.
Lee, a financial expert-turned politician, said he failed to see the rationale behind the sharp decrease in economic development funds, as the president has reiterated his resolve to give top priority to revitalizing the economy.
The economic expenditures, he noted, fall behind projected spending on education, social welfare and national defense, which account for 19 percent, 18.3 percent and 14.7 percent of spending.
Overly optimistic
The lawmaker also accused the Cabinet of loosely preparing the budget, noting it expects tax revenues to rise by 5.8 percent when all experts put the economic growth rate at 4 percent.
"The government will have difficulty balancing its accounts unless it decides to raise taxes in defiance of the president's `no tax hike' vow," Lee said.
In addition, he questioned the wisdom of seeking to fill the budgetary shortfall with money gained from selling shares of state-run enterprises.
Lacking income
The government has yet to raise some NT$600 billion in projected income for this year from such ventures due to a lack of interest on the part of investors at home and abroad, Lee said.
Chang Wan-chuan (
He noted that the government has unduly listed losses from the national stabilization fund and personnel outlays as investment capital in violation of budgetary codes.
The budget official added he found it inappropriate to classify money earned from investments made by the Cabinet's Development Fund as regular income.
He said his office will wrap up its the evaluation by Sept. 15 and that it is up to lawmakers to decide whether they will send back the budget for changes.
Defending the budget, Lin Chuan (
"The legislature cannot willfully return the budget which the DGBAS has prepared according to established rules," Lin said.
Only in October 2000 did the lawmaking body ever return the budget to the Cabinet when then-premier Chang Chun-hsiung (
The legislature will begin its budgetary review in late September when lawmakers return from summer recess.
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