The legislature passed the central government’s budget proposal for 2015 on Friday.
Under the plan proposed by the Cabinet, the central government’s revenues will increase by an estimated 5.4 percent over the current year, thanks largely to a better-than-expected economic outlook and a government fiscal restructuring program. Meanwhile, the spending budget will only rise 2.3 percent with most of the increases going to infrastructure, technological development, education and social welfare.
After the legislative review, the budget was cut by 1.277% with revenues and expenditures both reduced by around NT$ 25 billion (roughly US$835 million).
During the review process, the opposition camp proposed slashing several benefits for government officials and civil servants. But the proposal was shut down by the ruling party, which has the majority at the legislature.
The legislature also passed a proposal to cut the central government’s fuel budget by 30% in light of the plummeting oil prices. But if oil prices go back up during the year, emergency funds can be used to cover the extra cost.