The central government’s general budget for this fiscal year was yesterday sent to legislative committees for review after a presentation by Premier Cho Jung-tai (卓榮泰), in another step toward ending the budget impasse that has been ongoing for more than six months.
Addressing the Legislative Yuan in Taipei, Cho expressed his gratitude to all party caucuses for their positive interactions, and commitment to fiscal discipline and national development.
Despite severe challenges, Taiwan’s economic growth last year reached 8.68 percent, the highest in 15 years, thanks to the collective efforts of every citizen, he said.
Photo: Wang Yi-sung, Taipei Times
Taiwan rose two spots to sixth place in last year’s IMD World Competitiveness Ranking published by the International Institute for Management Development, and retained its position as the world’s most competitive economy among economies with populations of more than 20 million for a fifth consecutive year, he said.
Taiwan’s market capitalization also rose to US$4.14 trillion as of Wednesday last week, making it the world’s seventh-largest stock market, he added.
The general budget for this fiscal year was formulated in light of domestic and international economic conditions, while taking into account policy priorities and development needs, Cho said.
By the end of this year, the ratio of outstanding central government debt to the average nominal GDP of the previous three years is projected to fall to 26.4 percent, down 1 percentage point from the end of last year, he said.
The budget projects NT$2.8623 trillion (US$90.9 billion) in revenue, down 9.6 percent from last year, and NT$3.035 trillion in expenditure, up 0.9 percent, Cho said.
The resulting deficit of NT$172.7 billion, combined with NT$126.5 billion for debt repayment, leaves a gap of NT$299.2 billion that would be covered through further borrowing, he said.
The Cabinet would pursue a policy of building “a more open, more prosperous and more secure nation” to support Taiwan’s upward development, and enhance national resilience and security, he said.
On Wednesday last week, the party caucuses reached a consensus to invite Cho to report on the general budget and field questions, after which the bill would immediately be sent to committee review.
They also agreed that within six months of the budget being sent to committee review, the Executive Yuan should propose amendments increasing benefits for military personnel, civil servants and public-school teachers — an issue the opposition has cited as reason for delaying approval of the budget.
In his report, Cho said that the government has spared no effort in taking care of police, firefighters and military personnel.
Salaries have been raised four times since 2016, amounting to a cumulative increase of 14 percent, he said.
However, considering equity among different types of civil servants and constitutional issues, the Cabinet temporarily suspended the allocation of related budgets passed by the Legislative Yuan and filed a request for a constitutional interpretation and a preliminary injunction with the Constitutional Court on Aug. 22 last year.
The government would develop a more reasonable method for adjusting salaries in line with inflation, as well as a plan to adjust professional allowances that more closely aligns with the actual operations of the civil service system, Cho said.
Additional reporting by CNA
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