Taiwan’s public policy and think tanks held a symposium on the evening of the 5th, following the third reading passage of the “Budget Allocation Law” by the Legislative Yuan of the Republic of China, to discuss the impact on Taiwan and invite scholars and experts to analyze the relevant issues.
Host and professor of the law department at Soochow University, Hu Boyan, stated that the amendment of the “Budget Allocation Law” will bring about significant changes to local autonomy, local finances, and local politics, and it requires everyone’s continued attention.
Director of Taiwan Think Tank’s Survey and Public Opinion Center, Guo Meicen, mentioned that the amendments to the “Budget Allocation Law” passed by the Legislative Yuan at the end of last year have stirred a wide-ranging discussion in Taiwan regarding the overall financial distribution mechanism. While the initial intention of the amendment was to reduce the financial gap between the central and local governments and improve uneven resource distribution, there are still many concerns at the implementation level that may lead to further controversies.
Guo Meicen pointed out that the differing economic development levels and revenue sources among various counties and cities could result in metropolitan areas experiencing reduced financial income post-amendment, while financially weaker regions might receive more resources than they actually need. Without comprehensive support measures, this adjustment may not only intensify competition between regions but also lead to risks of inefficient resource use or inappropriate allocation.
Furthermore, she mentioned that fairness in financial distribution cannot solely rely on adjustments made through the “Budget Allocation Law” and suggested that the responsibilities of local administrative powers should be concurrently reviewed to prevent central and local governments from shifting blame for policy implementation, thus affecting governance efficiency.
Citing survey data, Guo Meicen emphasized the substantial difference in opinions regarding the amendment, indicating insufficient consensus and the need for more communication. She stressed that the amendment of the “Budget Allocation Law” is crucial for Taiwan’s long-term financial system development and should further consolidate societal consensus to ensure policies genuinely promote the sound development of local finances. She also urged the younger generation to actively monitor the transparency of local finances and the efficiency of resource utilization to push for a fairer and more sustainable fiscal system through social supervision.
Nantou County councilor Shen Suzheng analyzed that although the new “Budget Allocation Law” seemingly increases funds, the new calculation primarily focuses on business turnover and population indicators, which is highly unfavorable for rural counties and cities. Coupled with the decline in central government revenue, future project grants would significantly shift the burden onto local governments, ultimately widening the urban-rural gap and the urban gravitational effect under the new “Budget Allocation Law” in the long run.
Shen Suzheng emphasized the need for more public attention to local issues to enhance transparency in local councils and improve the quality and discipline of local fund utilization for strengthening welfare and infrastructure development.
Associate professor of the Department of Public Administration at Tamkang University, Chen Zhiwei, explained that budget allocation is a matter of resource distribution that necessitates considering how to benefit the country and the people at both the central and local levels. The “Budget Allocation Law” should be considered in conjunction with future developments in local institutional laws, local tax laws, and even regional administrative laws while enhancing the supervisory role of local councils to improve the overall governance results of regional administration, with external oversight relying on the efforts of audit institutions.
Professor of the Department of Public Affairs and Civic Education at National Changhua University of Education, Liu Zhaolong, pointed out that the new “Budget Allocation Law” releases 3.753 billion New Taiwan Dollars in funds, seemingly enhancing local government autonomy, but raises doubts about whether local governments are adequately prepared.
Liu Zhaolong referenced statistics from the National Development Council, noting that two-thirds of townships in Taiwan have reached the standard of a “dying township,” lacking young residents settling there, resulting in a lack of new births and a pressing need to address the aging population and rural youth returning issues. However, the administrative burden on local governments is often limited, and suddenly receiving budgets may lead to practices like “political vote-buying” and misallocated resources.
Professor and department head of the Department of Finance at National Chengchi University, Chen Guoliang, frankly stated that local autonomy necessitates independent local finances; hence, the “Budget Allocation Law” must be amended. However, this amendment focuses only on financial sources without clarifying the financial rights, responsibilities, and accountability between the central and local governments, leading to a fail in this revision.
Chen Guoliang proposed that to address the urgent problems stemming from this wave of amendments, the law should be implemented, and a new version should promptly be put forward to rectify the issues of unclear allocation indicators and responsibilities. Additionally, financial allocation should establish institutional constraints limiting the growth of local government expenditures, requiring priority debt repayment and allowing for significant administrative reserves to be earmarked by local authorities.
Professor of the Institute of Technology Law at Kaohsiung University of Science and Technology, Luo Chengzong, explained that since the “freeze-province” policy, a trend of “centralization” at the expense of weakening local governments has emerged. However, the last amendment to the “Budget Allocation Law” was in 1999, not aligning with current development conditions, clearly indicating that the “Budget Allocation Law” has long been neglected. He believed that the revision of the law should involve both financial and power devolution. For example, while localities bear the police funding, the actual command should be centrally coordinated, indicating considerable unfairness that needs appropriate corrections. Moreover, administrative divisions and local institutional considerations should be taken into account to ensure financial rationality.