The government will take out a record NT$516.2 billion (US$15.936 billion) in loans next year after Premier Wu Den-yih (吳敦義) yesterday revealed the central government’s revised budget statement request for 2010.
Directorate-General of Budget, Accounting and Statistics (DGBAS) Minister Shih Su-mei (石素梅) told a press conference that government debt was expected to reach NT$4.635 trillion by the end of next year, or 36.53 percent of the average GNP of the previous three years.
With NT$267.1 billion to be raised in a special budget request — NT$54.9 billion for post-typhoon reconstruction, NT$192.2 billion for the four-year economic stimulus plan and the NT$20 billion for water management projects at Shihmen Reservoir (石門水庫) and flood-prone areas — NT$249.1 billion, or 14.3 percent of next year’s annual expenditure, will be borrowed.
SHORTFALL
NT$183 billion will meet the shortfall between annual expenditure and income and NT$66 billion will go to pay off the principle on exisitng government debt.
The adjusted central government budget for next year still projects annual revenues at NT$1.552 trillion, but the Wu Cabinet trimmed projected government expenditure by NT$4.8 billion to NT$1.7398 trillion.
Shih said the reduction in expenditure was a response to calls that the government should conserve its savings and rein in its expenses in view of its fiscal woes.
Spending on education, science and cultural development accounts for the lion’s share of government expenditure for next year at 20.3 percent, followed by social welfare spending at 18.8 percent, defense expenditure at 16.6 percent and spending on economic development at 12 percent.
DEFENSE
Defense expenditure will make up 2.99 percent of the country’s GDP, almost meeting the government’s commitment to raise the amount to at least 3 percent of GDP.
The Cabinet meeting yesterday also approved a proposal aimed at creating job opportunities for typhoon victims.
If companies undertaking post-typhoon construction on the government’s behalf fail to preferentially hire typhoon victims, the government will reduce their quota of migrant workers as a punishment, Council of Labor Affairs Minister Jennifer Wang (王如玄) said.
ADDITIONAL REPORTING BY CNA
Taiwan is to receive the first batch of Lockheed Martin F-16 Block 70 jets from the US late this month, a defense official said yesterday, after a year-long delay due to a logjam in US arms deliveries. Completing the NT$247.2 billion (US$7.69 billion) arms deal for 66 jets would make Taiwan the third nation in the world to receive factory-fresh advanced fighter jets of the same make and model, following Bahrain and Slovakia, the official said on condition of anonymity. F-16 Block 70/72 are newly manufactured F-16 jets built by Lockheed Martin to the standards of the F-16V upgrade package. Republic of China
Taiwan-Japan Travel Passes are available for use on public transit networks in the two countries, Taoyuan Metro Corp said yesterday, adding that discounts of up to 7 percent are available. Taoyuan Metro, the Taipei MRT and Japan’s Keisei Electric Railway teamed up to develop the pass. Taoyuan Metro operates the Taiwan Taoyuan International Airport MRT Line, while Keisei Electric Railway offers express services between Tokyo’s Narita Airport, and the Keisei Ueno and Nippori stations in the Japanese capital, as well as between Narita and Haneda airports. The basic package comprises one one-way ticket on the Taoyuan MRT Line and one Skyliner ticket on
A new tropical storm formed late yesterday near Guam and is to approach closest to Taiwan on Thursday, the Central Weather Administration (CWA) said. Tropical Storm Pulasan became the 14th named storm of the year at 9:25pm yesterday, the agency said. As of 8am today, it was near Guam traveling northwest at 21kph, it said. The storm’s structure is relatively loose and conditions for strengthening are limited, WeatherRisk analyst Wu Sheng-yu (吳聖宇) said on Facebook. Its path is likely to be similar to Typhoon Bebinca, which passed north of Taiwan over Japan’s Ryukyu Islands and made landfall in Shanghai this morning, he said. However, it
Starlux Airlines, Taiwan’s newest international carrier, has announced it would apply to join the Oneworld global airline alliance before the end of next year. In an investor conference on Monday, Starlux Airlines chief executive officer Glenn Chai (翟健華) said joining the alliance would help it access Taiwan. Chai said that if accepted, Starlux would work with other airlines in the alliance on flight schedules, passenger transits and frequent flyer programs. The Oneworld alliance has 13 members, including American Airlines, British Airways, Cathay Pacific and Qantas, and serves more than 900 destinations in 170 territories. Joining Oneworld would also help boost