Premier Chang Chun-hsiung (
"I've sent an official letter [relating this request] to the legislature today. We've had problems carrying out this policy and it has increased our difficulties in subsidizing the local governments," Chang said.
In response, Legislative Yuan Speaker Wang Jin-pyng (
Chang's request follows a recent dispute between the legislative and executive branches over the use of the NT$94.16 billion subsidy fund.
Following inter-party negotiations on Monday, lawmakers decided that Lin Chuan (
The lawmakers, the majority of whom were from the opposition, said that while the DGBAS had not reported to the legislature on a monthly basis as required, some of the money had been appropriated for purposes other than those stated by the agency.
Lin said that the NT$33 billion was "legally required" spending such as salaries and retirement payments for local civil servants.
But lawmakers have raised suspicions that a certain amount of the money was appropriated for the purpose of financing "small construction projects" to meet the requests of certain DPP legislators with a need to secure votes.
Helping their constituencies to get funds for small construction projects, usually at the township and county municipality level, has traditionally been a means by which politicians could secure support from grassroots leaders who play a crucial role in election campaigns.
It was the deputies to the Taiwan Provincial Assembly who did the job until the Taiwan Provincial Government was downsized in 1998 -- when the responsibility for subsidizing counties and provincial municipalities was transferred from the provincial government to the central government.
Between 1998 and May 2000, when the KMT was still the ruling party, funds to finance small local construction projects were available from different government ministries. Legislators, especially those from the KMT, were widely reported to enjoy "a right to recommend" where the money was to be spent.
After taking power, the DPP cancelled the so-called "small construction funds" under the different ministries. The DGBAS now has a "general subsidy fund" for the 21 counties and provincial municipalities, which is allocated according to population size and local demand.
The DGBAS said this reform was intended to ensure transparency in the use of the money. Opposition lawmakers, led by those from the KMT, however, argued that the subsidy fund might still become "private money" for the DPP to favor its grassroots supporters unless the spending were properly monitored.
It was against this background that the legislature adopted a resolution in January, along with the passage of the fiscal 2001 budget, to require the Executive Yuan to report to the legislature before drawing on the NT$94.16 billion subsidy fund.
Chou Po-lun (周伯倫), convener of the DPP legislative caucus, said that this requirement was unreasonable and should be lifted soon.
"Now that the Executive Yuan is required to report to the legislature every month before sending the money to local governments, it is as if the budget for the subsidies had never been passed," Chou said.
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