KMT moots payout with future money

COUNTING CHICKENS: While the KMT lofted a plan to pay citizens with money that has not materialized yet, other officials slammed the idea on procedural grounds

• By Sam Garcia / Staff writer, with CNA

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The Chinese Nationalist Party (KMT) caucus yesterday said it plans to propose a bill that would issue a NT$20,000 cash handout to every citizen with the aim of “sharing economic gains and stabilizing livelihoods.”

The government collected NT$528.3 billion (US$16.57 billion) more in taxes than expected last year, and about 40 percent, or NT$230 billion, was allocated for universal cash handouts, KMT caucus whip Fu Kun-chi (傅?萁) told reporters as the new legislative session began yesterday.

This year’s tax revenue surplus is expected to exceed NT$1 trillion, and if the government allocated 40 percent of it, it would be enough to provide each citizen with a NT$20,000 cash payment, he said.

Economic growth is expected to reach almost 12 percent this year, so the government should report its largest tax revenue surplus yet next year, possibly exceeding NT$2 trillion, so that next year’s cash handout could be even more than NT$20,000, he said, without citing any government data.

The government should have a clear plan for surplus tax revenue, prioritizing debt repayment and improved benefits for older peoeple before determining how much can be distributed as cash handouts, Taiwan People’s Party caucus chief executive Hung Yu-hsiang (洪毓祥) said.

Any proposal involving a large increase in government spending must identify its funding source and first be discussed with the Executive Yuan according to the Budget Act (預算法), Democratic Progressive Party caucus chief executive Chuang Jui-hsiung (莊瑞雄) said.

Ahead of the meeting, Premier Cho Jung-tai (卓榮泰) said in an interview: “We can decide how to allocate the resources generated by our own efforts, but the debt incurred by our generation must never be left for the next generation.”

Executive Yuan spokeswoman Michelle Lee (李慧芝) said recently that any plan to disburse cash payments to the public must be based on three principles: it must not result in any increase in actual government borrowing, it must not crowd out other government programs such as social welfare, national defense, healthcare and education, and the process must comply with the law and the Constitution.

The Constitution mandates that the Legislative Yuan cannot propose increases in spending when reviewing a budget submitted by the Executive Yuan, Chuang said.

Policies should consider the government’s overall fiscal capacity and spending needs, including national defense, social welfare and economic development, he said.

Measures taken during energy crises to limit or freeze increases in electricity and fuel prices should be considered, he added.

Once the government has comprehensively addressed national needs, any remaining surplus funds should be shared with the public, but the issue should not turn into a bidding war between political parties, he said.