TAIPEI (TVBS News) — The head of Taiwan's opposition Kuomintang (KMT, 國民黨) criticized the central government on Wednesday (Dec. 25) for its response to the newly passed "Act Governing the Allocation of Government Revenues and Expenditures" (財政收支劃分法修正案), which promises significant benefits for local administrations. The Legislative Yuan (立法院) approved the amendment last Friday, altering how financial resources are divided between central and local governments. With support from opposition lawmakers, the amendment will allocate an additional NT$375.3 billion to local resources in 2025, supplementing the existing NT$1 trillion.
KMT Chairman Eric Chu (朱立倫), addressing the party's Central Standing Committee, noted that leaders including President Lai Ching-te (賴清德) have long advocated for changes to the fiscal law. Chu expressed disappointment over Democratic Progressive Party (DPP, 民進黨) legislators' opposition, citing central government concerns about potential impacts on future departmental policies. He highlighted the positive implications of increased funding, stating that local governments could enhance aging schools, repair damaged roads, and improve elderly facilities and childcare services.
Chu urged President Lai to recognize the Legislative Yuan's decision, which bolsters local efficiency without affecting central finances. He claimed that the president should celebrate local achievements rather than centralize funds, which forces localities to vie for resources. Chu described the amendment as a groundbreaking achievement, endorsed by fiscal scholars, marking a significant step in providing local governments with stable financial resources.
