The government would have to issue NT$101.4 billion (US$3.45 billion) in debt to implement the Chinese Nationalist Party’s (KMT) proposed universal NT$10,000 cash handouts, Premier Cho Jung-tai (卓榮泰) said yesterday, calling the scheme morally and financially questionable given the state of the nation’s finances.
The Legislative Yuan on Friday last week passed the third reading of a special relief package that included the cash handout, increasing the Executive Yuan’s proposed budget of NT$410 billion to NT$545 billion.
The opposition has claimed that the government has accumulated a budget surplus of NT$1.8 trillion from 2021 to last year, but the majority of it has already been allocated, leaving just NT$443.6 billion, Cho said.
Photo: Hsieh Chun-lin, Taipei Times
Along with NT$330 billion from nontax revenue and expenditure differences, nearly NT$900 billion has been allocated to paying down debt, NT$379.9 billion for the post-COVID-19 pandemic recovery plan, NT$280.4 billion for local governments, NT$195.7 billion for special funds and NT$15 billion for the new fighter jet special budget, he said.
Opposition parties voted down a proposed NT$100 billion subsidy for Taiwan Power Co (Taipower, 台電), while adding in NT$235 billion for the universal cash handout, he said, adding that the passage of the bill was neither legal nor constitutional.
Under the current circumstances, finances should be focused on disaster prevention, bolstering the economy, boosting national resilience and supporting vulnerable segments of the population, he said.
Cho said that he would again present a detailed report to the legislature to allow the public to understand the situation.
The government would use budgets, among other means, to support state enterprises including Taipower, whether the NT$100 billion subsidy is approved or not, he said.
The Cabinet has already proposed supplementary budgets, general budgets and three separate acts to support Taipower, which were cut or rejected by the opposition, he added.
Taipower needs to stabilize its finances, strengthen its financial situation, improve infrastructure and boost the resilience of the grid, he said.
The opposition has said that the special act is a legislative bill and not a budget bill, and is therefore in line with the Constitution, adding that the Executive Yuan had contravened the Constitution by refusing to draft a budget in accordance with the act.
Cho said that the opposition should not pretend to be ignorant of the law to evade legal provisions.
The Constitution clearly states that the Executive Yuan is responsible for drafting budgets and the legislature is tasked with reviewing them, he said.
Nevertheless, the Legislative Yuan had increased administrative spending without consulting the Cabinet, he added.
Cho urged legislators to practice fiscal discipline and follow proper procedures in passing budgetary bills.
The Executive Yuan has in the past sought remedies for multiple legislative and budget-related acts that it deemed unconstitutional or unlawful, he said, adding that the Cabinet would consider those actions in planning its next steps.
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