NT$2.7 Trillion Budget Stuck at Legislative Yuan

Taipei, May 29, 2006 (CENS)--With the current session of the Legislative Yuan scheduled to wrap up tomorrow (May 30), four major government budgets, totaling NT$2.7 trillion in scale, have yet to obtain approval by the yuan, victim of the cross fire between the ruling and opposition parties over the stipulation for direct cross-Taiwan Strait transportation link.

The four budgets being mired in the quagmire include budget for state-run enterprises for 2006, special budget for expansion of public construction projects, thawing of some frozen general budget items, and special anti-flooding budget, the scope of whose influence on the government' s policy is extensive.

Wang Chin-ping, speaker of the Legislative Yuan, will summon representatives from the ruling and opposition parties to discuss their disputes, as well as the need to extend the current session. Caucus of KMT, the main opposition party, though, has pledged to propose ending of the session should the ruling DPP (Democratic Progressive Party) continue to block the stipulation for direct transportation link. Under the scenario, it will set a record for the state-run enterprises failing to obtain approval of their budgets by the Legislative Yuan on schedule.

Despite several visits to the caucuses of KMT and People First Party by Vice Premier Tsai Ing-wen and Joseph Wu, chairman of the Mainland Affairs Council, the DPP and the opposition Pan-Blue Alliance still fail to reach agreement over the direct transportation stipulation.

In view of the serious consequences of the blockage of the budgets, the Executive Yuan is actively formulating countermeasures.

It needs at least one week for both camps to iron out their difference over the budget for state-run enterprises before it can obtain approval of the Legislative Yuan. The situation is similar for the thawing of some frozen general budget items, totaling some NT$200 billion in scale, including the budget for the Mainland Affairs Council.

An official of the Executive Yuan pointed out that if review of the budget for state-run enterprises is postponed to the next session, an unprecedented instance, personnel outlays for the enterprises will not be affected. It, though, will affect several key utility construction projects, including the water supply project for the Ilan subsidiary base of Hsinchu Science-Based Industrial Park and the renovation and expansion of Shenao Power Plan, the latter of which will affect the stability of power supply in Northern Taiwan during summertime. Moreover, construction for the fourth nuclear power plant will also be suspended due to the lack of funding.

Several government agencies will still get mired in serious financial strait due to the continuing freezing of their budgets, including National Security Council, the Mainland Affairs Council, the Government Information Office, and the Examination Yuan. Due to the blockage of the special NT$100.7 billion budget for the 10 new construction projects, several key construction projects will come to a halt, including No. 8 National Highway, the transformation of some railway sections into mass rapid transit system, and the Pali-Wuku section, in Taipei county, of east-west expressway.

If the anti-flooding budget is deferred to the next session, it won' t be put forward for review by the Legislative Yuan until October, already past the flooding season.

Moreover, several key transportation projects, including mass rapid transit systems in Taipei and Kaohsiung will come to a halt. They include the Neihu line, Hsinchuang-Luchou line, Hsinyi line, and Sungshan line of Taipei MRT system.