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
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