TAIPEI (Taiwan News) — Kaohsiung Mayor Chen Chi-mai (陳其邁) on Tuesday called for another revision of the fiscal allocation law, saying central government funds are not fairly distributed among local governments.
Commenting on the government's planned NT$10,000 (US$314) cash payment, Chen said he supported President Lai Ching-te's (賴清德) proposal. He said strong economic growth and higher tax revenue driven by the artificial intelligence boom should be shared with the public, CNA reported.
Chen also urged Kaohsiung lawmakers to support the payment when the central government budget comes before the legislature. He said they should also back spending on national defense, the defense industry, and central government funding for Kaohsiung.
However, Chen said the broader problem was inequality in local government finances. He said Kaohsiung's combined funding from centrally allocated taxes, general subsidies, and project-based subsidies would decrease by NT$16.3 billion this year.
Chen said he supported the NT$10,000 payment but opposed increasing it further before the government addressed imbalances in local finances. He argued that wealthier local governments should not receive more funding while governments with fewer resources struggle to meet basic needs.
Chen said the fiscal allocation law funding formula should take differences in regional development into account and distribute central government resources more evenly.
