The Legislature passed amendments to three controversial bills last Wednesday, namely the Public Officials Election and Recall Act, Constitutional Court Procedure Act, and the Act Governing Revenues and Expenditures. In press conferences today, the Cabinet, KMT, and DPP all responded to backlash over the changes brought about by the amendments – especially to the latter, which affects the currently proposed 2025 budget.
Should the changes go into effect, the amendments to the Act Governing Revenues and Expenditures would shift NT$375.3 billion (US$11.49 billion) of the central government budget to local governments, without shifting responsibility for carrying out many public services. Further, the amendments do not specify an implementation date, so by default they would go into effect three days after being signed.
On Monday, Cabinet Spokesperson Michelle Lee (李慧芝) responded to the proposed changes, saying that they would severely impact the 2025 budget and may even necessitate a complete rewrite. She also said that as the opposition parties rushed to pass the law without sufficient discussion or collaboration, important variables such as the means of different municipalities were not taken into account.
Budget, Accounting, and Statistics Minister Chen Shu-tzu (陳淑姿) pointed out that the 2025 budget is currently under review and it is not yet clear how the General Accounting Office will be able to respond to the newly proposed revisions and budget allocations. He added that many areas are likely to be affected by budget cuts, including but not limited to the defense budget and public construction funds.
Lee said that the Cabinet hasn’t yet received the new articles post their third reading and currently is studying all constitutional methods that could prove useful for relief.
The KMT League also held a press conference pointing out that President Lai Ching-te (賴清德) and other DDP officials were in favor of amending the Act Governing Revenues and Expenditures in the past, asking why they now had problems. KMT Caucus Secretary General Lin Szu-ming (林思銘) argued that the proposed amount for reallocation was only a drop in the bucket, saying that the problem is not a lack of funds, but an inability to manage them. Lin also said that the proposed changes should only encourage local governments to generate revenue and lower the financial gap between rural and urban areas. He said that the KMT will be on watch, and not allow any laws passed to be ignored by the Cabinet.
In response to the KMT League’s stance, DPP Secretary-General Rosalia Wu (吳思瑤) criticized the KMT for being deceptive in saying that all would benefit, listing NT$98.8 billion (US$3.02 billion) in disaster prevention and water control budgets which would be affected. She also pointed out that the changes brought about by the amendments would prioritize the north over the south, and reduce the centralized government’s ability to assist local governments in the future. Such a thing, she said, cannot simply be let go, and the KMT would undoubtedly fall in public opinion.