The government has earmarked a record NT$49.9 billion (US$1.58 billion) in subsidies for local MRT construction next year, more than five times the amount budgeted for this year and the highest annual allocation for local MRT projects to date, the Ministry of Transportation and Communications said yesterday.
The ministry hosted a news conference to present statistics after local governments in Taipei, New Taipei City, Taoyuan and Taichung accused the central government of curtailing the budget for the MRT projects in their localities and sought additional funding.
Deputy Minister of Transportation and Communications Wu Sheng-yuan (伍勝園) said yesterday the central government determines its subsidies based on the progress of individual projects, taking into account factors such as construction schedules, tender awards and budget execution.
Photo copied by Wang Jung-hsiang, Taipei Times
The central government has provided more than NT$716.1 billion in subsidies for local MRT projects over the years, with Taipei, New Taipei City and Keelung accounting for NT$488.2 billion, or about 68 percent, Wu said.
For subsidies to be allocated for next year, Wu said the amount was determined following a meeting with local governments officials on May 4 on the progress of their MRT lines. Some are still in the planning stage, while others are already under construction, he said. The average subsidy rate for local MRT projects was about 80 percent last year, Wu said.
Approved subsidy funding for the Taipei-Keelung-Taoyuan region for next year is about 80 percent of its overall budget request, while the figure for southern Taiwan is about 70 percent, Wu said, adding the ministry has made similar fiscal arrangements in the same way in the past few years.
New Taipei City has requested an additional NT$5.4 billion after its MRT subsidies were cut in next year’s budget and has formally asked the ministry to prioritize restoring the cut. Taipei said it is short NT$6 billion in central government funding, while Kaohsiung says it has a NT$13.6 billion shortfall. Wu said there is no indiscriminate spending of public funds for MRT projects. The ministry has established review guidelines for subsidies for MRT construction projects, he said. Local governments submit their funding needs, after which the ministry reviews the proposed projects and assesses whether the funding is warranted, he said, adding that projects with unclear plans would not be approved.
All projects are subject to rigorous scrutiny at every stage, including an initial review by the Railway Bureau, a review by the ministry and an assessment by external committee members.
The ministry said that an amendment to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) last year has reduced the central government’s financial resources available for local infrastructure.
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