The Executive Yuan today announced plans to cut subsidies for local governments by 25 percent across the board and is to decide on future funding based on the results of constitutional judgments.
The Cabinet’s decision followed the central government budget passed by the Legislative Yuan earlier this year that required the Executive Yuan to reduce the budget by more than NT$63.6 billion (US$2.117 billion).
Several city government heads today urged the Cabinet to reconsider the decision, including New Taipei City Mayor Hou You-yi (侯友宜), Taipei Mayor Chiang Wan-an (蔣萬安), Kaohsiung Mayor Chen Chi-mai (陳其邁) and Miaoli County Commissioner Chung Tung-chin (鍾東錦).
Photo: Chung Li-hua, Taipei Times
The cuts are a violation of the law and abuse of power, Chinese Nationalist Party (KMT) caucus secretary-general Wang Hung-wei (王鴻薇) said today.
The Legislative Yuan has not made any cuts to the local subsidies, and the Executive Yuan has no authority to unilaterally cut them, Wang said.
Statistics compiled by the KMT caucus showed that the government is seeking to punish local governments, she said.
KMT Legislator Chang Chia-chun (張嘉郡) said that the reduction of subsidies to local governments would widen the gap between urban and rural residents and treats those living in counties like second-class citizens.
Every grievance has a source, and every debt has an owner, DPP caucus chief executive Rosalia Wu (吳思瑤) said today, blaming the subsidy cuts on the previously passed government budget.
The Executive Yuan and all Taiwanese are “victims” of the KMT and TPP, Wu said.
The central government is not required to provide these subsidies, Executive Yuan spokesperson Michelle Lee (李慧芝) said today, adding that the decision is in accordance with relevant regulations.
The Legislative Yuan cut NT$207.6 billion from the budget, of which NT$143.9 billion has already been removed by the central government, Lee said.
Many of the budget cuts impacted specific items and agency budgets, Lee added, and reducing subsidies is one of the very few ways left for the government to avoid serious impacts on security, diplomacy and education.
The Directorate General of Budget, Accounting and Statistics’ (DGBAS) reduction of local subsidies is equally in line with the Legislative Yuan’s general budget cuts, she added.
The Executive Yuan has requested a constitutional judgment and is to discuss the next steps based on the results, Lee said.
The government understands the difficulties faced by local governments in response to these cuts and would look for ways to assist them, DGBAS Deputy Director Chen Hui-chuan (陳慧娟) said.
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