The large-scale cuts and freezes proposed by the Chinese Nationalist Party (KMT) and Taiwan People’s Party during deliberations over this year’s central government budget have caused government agencies to face unprecedented operational challenges.
Directorate-General of Budget, Accounting and Statistics data showed that the freezes alone amount to NT$138.1 billion (US$4.21 billion) — about 4.6 percent of the total budget — which is nearly nine times higher than the average NT$14 billion freeze of the past three years.
Such excessive freezes are no longer in the realm of fiscal oversight — rather, they are more akin to indirect budget cuts meant to slash the basic operating funds of government agencies.
The budget freezes target specific agencies and projects, demonstrating clear political motive. The Control Yuan’s operating expenses were frozen by 96 percent, the Office of the President’s operating expenses were frozen by 73 percent and the Ill-gotten Party Assets Settlement Committee’s budget was slashed by 90 percent. In addition, travel expenses to China were uniformly cut by 80 percent, expenses for overseas travel and educational training were reduced by 60 percent and media policy and business promotion expenses were cut by 60 percent.
The cuts and freezes are not adjustments based on specific agencies’ operational requirements, they are part of a tactic to prevent certain departments from performing their duties.
What is even more inconceivable is that the conditions for unfreezing most frozen budgets are excessively rigid and difficult to meet. Therefore, these “frozen” funds have effectively been cut. Some agencies’ frozen funds require that they be released only after completing specific legislative procedures or meeting highly uncertain conditions, which undoubtedly creates significant obstacles to administrative operations.
When the funds of government agencies are effectively cut, certain policies cannot be implemented. Therefore, the public is who would ultimately suffer. Whether it is public services, international exchanges or even basic administrative functions, all could face severe effects.
Premier Cho Jung-tai (卓榮泰) said that such large-scale budget freezes have already transcended the scope of fiscal oversight, effectively weakening the operating capacity of the central government and posing a serious threat to the promotion and advancement of major national policies.
He said that budget deliberations should be conducted on a foundation of rationality and professionalism, not be used as a tool for political battles.
The large-scale budget freezes would have significant negative effects on government operations and the provision of public services. While budget oversight is undoubtedly important, excessive budget intervention that jeopardizes the normal operations of administrative departments not only affects government efficiency, but also harms the rights and interests of the public.
Fiscal deliberations must return to the ideals of professionalism and rationality to ensure the effective operation of government agencies. Only in that way can the original purpose of budget planning — to serve the nation and its citizens — be realized, rather than becoming nothing more than a means of political manipulation.
Edwin Yang is an associate professor at the College of International Studies and Social Sciences of National Taiwan Normal University.
Translated by Kyra Gustavsen
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