Although President Chen Shui-bian (
If both the ruling and opposition camps disregard the government's financial problems, the hole in the government's finances will increase. The distribution of public resources and the effective organization of social welfare will become seriously distorted.
The system whereby the ruling party leads the government first drew criticism from all sides after the recent Tashee meeting failed to follow administrative proce-dures. Now, the allocation of the elderly welfare subsidies has once again highlighted the problem of the Chen administration's top-down policymaking model.
The National Pension Program will start next year. Whether it's necessary to expand the eligibility for the elderly welfare subsidies is debatable. Unfortunately, the DPP vetoed the Executive Yuan's decision, pushing its own decision before any financial evaluation was conducted.
The government now grants more than NT$70 billion in subsidies per year. An in-depth study of the promises made by Chen during the DPP Central Standing Committee meetings -- such as the subsidies for the physically and mentally disabled -- shows that total government subsidies, if implemented, would be worth close to NT$100 billion.
These subsidies will also prevent local governments from carrying out effective development programs. As a result, the balance between northern and southern Taiwan, assistance for young people and the promotion of a climate of arts and culture will become mere slogans.
In addition, some 10 pieces of pork-barrel legislation are waiting for review in the Legislative Yuan. But under financial pressure, the DPP has actually supported expanding the elderly welfare subsidies beyond the opposition parties' proposal. How can the government possibly criticize the opposition parties for pushing pork-barrel bills?
The DPP's enthusiasm for more subsidies proves that both it and the opposition care only about winning votes -- not the government's finances.
The Directorate General of Budget, Accounting and Statistics deserves praise for arguing with the DPP over the elderly welfare subsidies. Turning social welfare policy into an election tool will not only cause financial problems but also distort the reasonable distribution of public resources. The public will suffer and so will the political parties, since they will not be able to satisfy the endless demands of vested interests.
Justin Chen is a research fellow of the National Policy Foundation.
TRANSLATED BY EDDY CHANG
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