TAIPEI (Taiwan News) — Legislators clashed over proposed amendments to the financial planning act in a meeting that lasted until around 11.30 p.m. Monday (Nov. 4).
Nearly 40 DPP, KMT, and TPP legislators discussed 22 proposed amendments to the Act Governing the Allocation of Government Revenues and Expenditures at a meeting of the legislature’s Finance Committee, per CNA.
DPP legislators said the KMT had not allowed for adequate discussion of the amendments, while the KMT accused the central government of concentrating power and funds.
The proposed amendments seek to alter the allocation of financial resources between central and local governments. If the proposed amendments pass, the KMT caucus estimates funds allocated to Taiwan’s 22 local governments will reach NT$987.6 billion (US$30.88 billion).
DPP legislators who spoke at the meeting said discussions were not properly prepared. Eight DPP legislators including Fan Yun (范雲), Puma Shen (沈伯洋), and Wang Ting-yu (王定宇) said that local government representatives should be present at the meeting, as well as representatives of central government agencies that would be affected.
In response, Finance Committee Chair Chen Yu-jen (陳玉珍) of the KMT said that local government representatives and the deputy ministers of relevant ministries would be called to attend the meeting when it reconvenes on Wednesday (Nov. 6).
Meanwhile, KMT Legislator Wang Hung-wei (王鴻薇) noted that local government heads attended a public hearing on the proposed amendments held on June 5.
DPP Legislator Loh Meei-ling (羅美玲) said that the KMT and TPP are trying to divert money to local governments without adequate discussion. Loh also questioned whether Chen could manage a discussion of a bill requiring a high level of consensus.
Chen said that all who wanted to discuss the amendments would be given time to speak and meetings would be extended if need be. She said that the Finance Committee should not meet without setting a clear agenda and should not continue to deliberate without coming to a decision.
The Act Governing the Allocation of Government Revenues and Expenditures was last amended in 1999 when it was decided that 75% of tax revenue would be provided to central governments and 25% to local. Other streams of revenue are available to local governments, including labor and health insurance funds, and central government subsidies.
According to a June report, the finance ministry said it planned to increase tax revenue provided to local governments. It said there should also be a comprehensive examination of the division of powers between local and central governments and the recent financial situation.
The ministry also said the amount of money allocated to local governments had increased over recent years. According to the ministry's accounting office, central government tax revenues and subsidies allocated to local governments increased from NT$405.1 billion in 2014 to NT$634.6 billion in 2024.
