The Executive Yuan had forecast annual revenues in 2008 to be US$48.5 billion, with expenses totaling US$51.5 billion. The Legislature later adjusted these figures, to US$48.3 billion and US$51.1 billion respectively. The shortfall will be covered by government debt restructuring and the surplus from previous years.
The majority of the budget cut was linked to national defense. The Legislature cut about US$68.2 million for the purchase of F16-C/D aircraft and US$103 million for buying American-made diesel submarines. The fund of US$606 million for purchasing F16 aircraft was frozen until the United States agrees to complete the sale. On the other hand, a total of US$2.1 billion for Hsiung Feng-2E cruise missiles and the U.S.-made PAC-3 anti-missile system, along with US$224 million for Apache helicopters, was approved.
A total of US$606,060 was cut from the state-affairs fund for the president, while the special allowances of the education minister, the Central Election Commission chief and the Government Information Office minister were frozen. In addition, US$9.1 million of the 228 Peace Fund was frozen, as well.
In response, GIO Minister Shieh Jhy-wey argued that "freezing" budgets is in fact illegal and that the Legislature's resolution has no power over the executive branch if the content is not connected with the budget itself, the China Times reported Dec. 21.
The Legislature also demanded that all government agencies recover funds they gave to the GIO for running Taiwan's United Nations referendum proposal. Agencies must submit their financial demands before the end of the current fiscal year, with ministers who fail to do so being sued.
Meanwhile, the decision to use the one-step voting procedure where four ballots will be handed out at once for the Jan. 12 legislative elections and two referendums extended to the budget. The Legislature resolved that the CEC cannot refuse to fund local election commissions if they use the two-step voting system employed in 2004's presidential election.
Write to Amber Wu at amber0207@mail.gio.gov.tw