Print

Mail

wiki links

Growth won’t hit targets: report

By Shih Hsiu-chuan
STAFF REPORTER
Saturday, Aug 30, 2008, Page 3

Members of youth groups at a press conference in Taipei yesterday call on young people to join them today at a rally to express their dissatisfaction with President Ma Ying-jeou’s first 100 days in office. PHOTO: CHU PEI-HSIUNG, TAIPEI TIMES

The government expects next year’s economic growth rate to be 5.1 percent and per capital national income to be US$19,756, both lower than the figures that President Ma Ying-jeou (馬英九) promised during his campaign — 6 percent and US$30,000.

The projections were made in the government’s budget request for next year, which was sent to the legislature for review yesterday. The legislature is scheduled to convene on Sept. 19.

The Directorate General of Budget, Accounting and Statistics said the economic growth rate this year was expected to reach 4.3 percent, while per capital national income was projected at US$18,883.

The budget request will yield a shortfall of NT$124.8 billion (US$4 billion), which will bring the nation’s debt to NT$4.026 trillion — an increase of NT$120.5 billion, or 3.08 percent, over this year.

In the budget request, the central government’s spending was projected at NT$1.62 trillion, an increase of NT$118.3 billion, or 6.9 percent, over this year, while annual revenue was projected at NT$1.7052 trillion, up from NT$1.6203 trillion.

The Ministry of National Defense’s annual budget stood at NT$315.2 billion for next year, a decrease of NT$10.4 billion, or 3.2 percent, from this year’s level, marking the only one expenditure item that saw a drop in the budget request.

Despite the drop, the amount allowed Ma to meet his campaign promise to keep his administration’s spending in national defense at no less than 3 percent of GDP.

However, the decrease in the defense budget mainly came from money initially earmarked for arms purchases from the US, a decrease of NT$44.1 billion in the ministry’s confidential budget, half of which was said to be used in military investment.

A legislative aid, who asked not to be named, said the reduction came in the wake of a US freeze on arms sales as the ministry planned to reserve the approved arms budget for next year and therefore there was no need to add funds to next year’s budget request.

Among other expenditure items, the spending for economic development for next year increased by 23 percent and that for community development and environmental protection rose by 64.2 percent in comparison with those of this year.

Meanwhile, the budget request statement showed that the confidential budget of the Ministry of Foreign Affairs, usually used in foreign aid, was cut by NT$1.927 billion, or 33.34 percent, from NT$5.779 billion this year to NT$3.851 billion.

The reduction reflected Ma’s call for a diplomatic truce with China, under which both sides of the Strait stop luring each other’s allies by offering large sums of money.


This story has been viewed 1312 times.