TAIPEI (Taiwan News) — Tainan Mayor Huang Wei-che (黃偉哲) expressed concerns on social media Tuesday about the recent amendments to the Act Governing the Allocation of Government Revenues and Expenditures.
Huang pointed out that despite Tainan's population of 1.86 million, it would receive only NT$200 million (US$6 million) more in allocated funds than Hualien, which has a population of 320,000. He also highlighted that while Tainan covers a larger area than Changhua and has a significantly larger population, it would receive less funding than Changhua under the amended formula.
Huang criticized the lack of communication with local governments before the law's passage. He stated his support for the amendment but warned that the new allocation formula must not worsen regional imbalances.
Cabinet Spokesperson Lee Hui-chih (李慧芝) stated Monday that the Act Governing the Allocation of Government Revenues and Expenditures requires local governments to prioritize funding for sectors like social welfare and education with their own financial resources. Due to financial imbalances, the central government has provided support to counties and cities with fewer funds through subsidies and grants.
Lee noted that local governments have been operating with surpluses and reducing debts, citing Premier Cho Jung-tai’s (卓榮泰) claim that the current allocation act is the most feasible for implementation. She emphasized that while there have been calls for amendments, reaching consensus takes time, but the KMT passed amendments before an agreement was reached.
Huang also addressed claims that Tainan receives a lot of subsidies, stressing that this is due to past funding shortages. He noted that Taipei and New Taipei have well-developed infrastructure, with the central government providing NT$677.5 billion (US$20.7 billion) for their metro systems, resulting in a comprehensive transportation network.
Meanwhile, Tainan’s metro project is still in its early stages. It faces potential setbacks due to the new allocation law, which could significantly impact the NT$250 billion in funding.
Huang said the limited national tax revenue could lead to crowding out effects and imbalances in spending, which is especially concerning for Tainan due to its large area and high proportion of elderly residents. He noted that long-term care and other social welfare expenditures, which require significant resources could be affected by the amendment.
Huang emphasized that every hardworking, taxpaying resident of Tainan should be recognized. Fiscal distribution should be fair and just, ensuring that resources reflect local needs and contributions.