Without slashing a dollar, legislators yesterday passed a NT$150 billion (US$5.02 billion) increase to the Special Budget for COVID-19 Prevention, Relief and Recovery.
Prior to passing the increase, lawmakers across party lines agreed — during a preliminary review held by six committees and subsequent cross-caucus talks — not to trim the budget, but to bail out industry sectors and individuals’ livelihoods beleaguered by the pandemic.
The budget increase — which builds on NT$60 billion in stimulus funding that was passed on Feb. 25 — is divided into two parts: NT$133.5 billion in relief funds and NT$16.5 billion for disease prevention.
Photo: Tu Chien-jung, Taipei Times
The increase is to cover subsidies for affected companies’ utilities, payroll and operating expenses; credit guarantees and interest subsidies; grants for lower-income households; and programs to spur consumer spending.
Minister of Finance Su Jain-rong (蘇建榮) said in the explanation for the increase that it would be entirely sourced from borrowing.
In addition to NT$210 billion allocated from special budgets, the government has reallocated NT$140 billion from the general budget and approved a NT$700 billion line of credit from government-owned financial institutions to support businesses affected by the pandemic.
The total NT$1.05 trillion relief package would be about 5.36 percent of Taiwan’s GDP for this year, which is forecast to be NT$19.58 trillion.
Several resolutions accompanying the budget increase were also passed.
One resolution said that the Financial Supervisory Commission would ban banks from approving subsidized loans to illegal factories established after May 19, 2016, in order to protect the environment.
New Power Party (NPP) Legislator Chen Jiau-hua (陳椒華), who sponsored the resolution, said that it was drafted in accordance with an amendment passed last year to the Factory Management Act (工廠輔導管理法), which said that newly established illegal factories should be torn down.
A resolution sponsored by the Chinese Nationalist Party (KMT) caucus calling for cash handouts for low and middle-income households was struck down after being put to a vote.
NPP caucus whip Chiu Hsien-chih (邱顯智) thanked the legislators for the nonpartisan support that the party’s other resolutions received, including one that prohibits the Ministry of Finance from penalizing banks that fall short of government targets for issuing subsidized loans.
KMT Legislator William Tseng (曾銘宗) said that several resolutions that he sponsored passed, including one requiring state-run banks to report to legislative committees any progress made in issuing subsidized loans.
The resolution would require the National Audit Office to review the amount of loans provided and report the results to the Legislative Yuan, and that the Executive Yuan report the progress and efficacy of the special budget within three months of the initial budget’s passage.
Democratic Progressive Party caucus secretary-general Chung Chia-pin (鍾佳濱) said that he hopes agencies would use the budget wisely so that taxpayers’ money can go to bailing out businesses.
Additional reporting by CNA
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
SECOND SPEECH: All political parties should work together to defend democracy, protect Taiwan and resist the CCP, despite their differences, the president said President William Lai (賴清德) yesterday discussed how pro-Taiwan and pro-Republic of China (ROC) groups can agree to maintain solidarity on the issue of protecting Taiwan and resisting the Chinese Communist Party (CCP). The talk, delivered last night at Taoyuan’s Hakka Youth Association, was the second in a series of 10 that Lai is scheduled to give across Taiwan. Citing Taiwanese democracy pioneer Chiang Wei-shui’s (蔣渭水) slogan that solidarity brings strength, Lai said it was a call for political parties to find consensus amid disagreements on behalf of bettering the nation. All political parties should work together to defend democracy, protect Taiwan and resist
By refusing to agree spending increases to appease US President Donald Trump, Spanish Prime Minister Pedro Sanchez threatened to derail a summit that NATO Secretary-General Mark Rutte needs to run smoothly for the sake of the military alliance’s future survival. Ahead of yesterday’s gathering in The Hague, Netherlands, things were going off the rails. European officials have expressed irritation at the spoiler role that Sanchez is playing when their No. 1 task is to line up behind a pledge to raise defense spending to 5 percent of GDP. Rutte needed to keep Spain in line while preventing others such as Slovakia
RSS