KMT Vows to Defy Cabinet Request, Uphold Local Gov’t Funding Changes

Taipei: Kuomintang (KMT) lawmakers on Thursday vowed to uphold amendments allocating more tax revenues to local governments, after the Cabinet said it would request a reconsideration.

According to Focus Taiwan, the KMT caucus leader Lo Chih-chiang criticized the Cabinet for unveiling its own draft amendments to the Act Governing the Allocation of Government Revenues and Expenditures last Thursday. He accused the ruling Democratic Progressive Party of attempting to “bury” the revisions passed by the opposition-controlled Legislature on November 14. Lo argued that if the Cabinet truly respected local fiscal autonomy, it should first allow the Legislature’s version of the revenue allocation act to take effect and then assess its impact.

At a news conference earlier Thursday, the Cabinet expressed concerns that the Legislature’s amendments would strain the central government’s finances, forcing it to take on an additional NT$264.6 billion (US$8.43 billion) in debt next year, which would exceed the annual borrowing cap. Under Taiwan’s political system, the executive branch can order the Legislature to revisit bills it deems difficult to implement.

The Cabinet’s latest move, awaiting President Lai Ching-te’s approval, would mark the eighth such request in just over a year. The previous seven requests were all rejected by lawmakers from the KMT and Taiwan People’s Party, who together hold a majority in Taiwan’s 113-seat Legislature.