TAIPEI (TVBS News) — Executive Yuan Spokesperson Michelle Lee (李慧芝) warned on Monday (Dec. 23) that the recent amendments to the "Act Governing the Allocation of Government Revenues and Expenditures" (財政收支劃分法) could severely impact next year's budget. The Legislative Yuan passed the amendments last Friday, but without an effective date, they will take effect within three days of presidential promulgation.
The amendments, which also included changes to the "Public Officials Election and Recall Act" (選罷法) and the "Constitutional Court Procedure Act" (憲法訴訟法), require the central government to release an additional NT$375.3 billion. This move has raised concerns about fiscal discipline and the central government's financial management.
Lee, along with Finance Minister Chuang Tsui-yun (莊翠雲) and Directorate-General of Budget, Accounting and Statistics Minister Chen Shu-tzu (陳淑姿), held a press conference on Monday to discuss the impact on central and local government finances. Lee highlighted that, under the "Local Government Act" (地方制度法), social welfare should be prioritized by local governments, but varying financial capacities have led to central subsidies.
Despite recent surpluses in local finances, Lee stated that the Executive Yuan remains open to amendments but requires time for consensus. Chen noted that the central government's budget for next year is under review, and the agency is exploring budget allocation responses. Lee added that they are considering constitutional relief procedures and evaluating countermeasures to comply with constitutional processes.
