Subsidies allocated to the six special municipalities for the construction of MRT systems would be reduced by NT$30.85 billion (US$1.01 billion) next year following the passage of amendments earlier this year, the Ministry of Transportation and Communications said yesterday.
The amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法), proposed by Chinese Nationalist Party (KMT) and Taiwan People’s Party lawmakers, would substantially increase government revenue allocated to local governments, while decreasing funds for the central government, Minister of Transportation and Communications Chen Shih-kai (陳世凱) told lawmakers at a meeting of the legislature’s Transportation Committee.
Subsidies that can be granted to local governments from the central government would decrease as a result, he said.
Photo: Liao Chen-huei, Taipei Times
The ministry initially budgeted NT$39.9 billion to subsidize the construction or expansion of MRT systems in Keelung and the six special municipalities, but the Executive Yuan only approved NT$9.05 billion, he said.
Railway construction projects proposed by Taiwan Railway Corp (TRC) and the Railway Bureau would also be affected by the amendments, according to the ministry’s budget plan next year.
TRC originally budgeted NT$21.25 billion for railway construction projects next year, but the amount approved by the Executive Yuan was NT$6.71 billion short. The budget for enhancing the safety of railway structures and the maintenance of trains was cut by about NT$2.95 billion.
The Railway Bureau planned to allocate NT$50.06 billion for railway construction projects, but is set to only receive NT$30 billion. Funding to electrify the dual railway tracks between Hualien and Taitung counties, and build an underground railway system in Taoyuan would be cut by about NT$16.9 billion.
The ministry has few resources to support infrastructure projects following the passage of the amendments, Chen said, adding that rules governing the distribution of subsidies have yet to be finalized.
“We would continue to review projects proposed by local governments. However, the amount of subsidies they receive each year would vary, depending on the government’s fiscal condition,” he said.
All Railway Bureau projects would proceed as scheduled based on contracts with construction firms, while budget plans would be compiled each fiscal year, bureau Director-General Yang Cheng-chun (楊正君) said.
TRC said its project to maintain trains and enhance railway structure safety is a multiyear plan, adding that more funding would be allocated in subsequent years should a shortfall occur this year.
The ministry said it would adjust subsidies proposed by local governments based on their respective needs, adding that it would also account for a locality’s financial soundness and the extent of MRT network development when deciding on the amount of subsidies to be allocated.
MRT systems fall under the jurisdiction of local governments, but the central government is obligated to provide subsidies to cover part of construction costs and to ensure that the systems deliver benefits from cross-regional connectivity, the ministry said.
Following the passage of the amendments, the funding local governments can access has vastly increased, and they should prioritize the needs of residents by budgeting appropriately for MRT and light rail systems, it added.
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