The Executive Yuan said yesterday that it would propose its own amendment to the fiscal revenue act, adding to controversy over the act’s revision as lawmakers from both ruling and opposition parties have proposed amendments.
Amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) have sparked debate over allocating more tax revenue to local governments.
Photo: Wang Yi-sung, Taipei Times
Premier Cho Jung-tai (卓榮泰) said today that the Executive Yuan hopes to discuss the matter with local governments based on a model where vertical powers are divided and financial resources are balanced.
While local governments would receive a larger share of tax revenue, they would need to take on more responsibilities for self-governance, Cho said, emphasizing that this is how the fiscal revenue act can be sustainable in the long term.
After consulting with local governments, the Executive Yuan would propose a complete version of the amendment and strive to incorporate reasonable suggestions from legislators, he said.
Speaking to the media before a meeting with the Legislative Yuan today, Cho said that the Executive Yuan intends to propose a version of the act that ensures long-term stability.
The Cabinet has taken into consideration the views of fiscal experts and lawmakers across party lines, he said.
The main challenge now is addressing errors raised during the Executive Yuan’s review of next year’s fiscal planning bill, he added.
In addition, opposition parties were dissatisfied that the central government’s 2026 general budget did not allocate funds to improve military pay and police and firefighter pensions, and have requested a reconsideration of the budget bill, demanding that it be sent back to the Procedure Committee.
In response, Cho reiterated today that if the Constitutional Court rules the measure constitutional, the funds would be allocated and could be applied retroactively.
However, if it is deemed unconstitutional then it cannot be budgeted, he said.
He added that he hopes the legislature has sufficient time to thoroughly review the general budget bill.
With the Legislative Yuan currently conducting its general policy inquiry, it might not have enough time to handle the general budget, he said.
Cho also said he wanted to discuss the matter with Legislative Yuan Speaker Han Kuo-yu (韓國瑜) and all party caucuses so that they do not repeat this year’s mistakes.
Next year, the Executive Yuan would be implementing a wide range of central government policies, including numerous public welfare initiatives, youth programs and AI-related projects, all of which require central and local government cooperation, he said.
Many local subsidies, whether for infrastructure projects or social welfare programs, depend on the Legislative Yuan’s prompt review and approval of the central government’s general budget for next year, he added.
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