Taipei, Taiwan — A heated brawl between lawmakers marred the review process of proposed amendments to Taiwan’s key fiscal law on Wednesday. The Act Governing the Allocation of Government Revenues and Expenditures, which determines how funds are distributed between the central and local governments, has been the center of a political standoff following a clash between ruling and opposition lawmakers.
The proposed amendments, which are intended to update the funding allocation system for the first time in over 25 years, have ignited significant debate in Taiwan’s Legislature. While the amendments have passed an initial review by the Economics Committee, tensions remain high, and the path forward for these changes is unclear.
The Amendments and Their Importance
The amendments, if passed, would represent a major shift in Taiwan’s fiscal structure. The current system allocates 75% of government funds to the central government, leaving just 25% for local governments. This imbalance has been a point of contention, particularly as the ruling Democratic Progressive Party (DPP) faces opposition from the Kuomintang (KMT) and Taiwan People’s Party (TPP), both of which support a more equitable distribution of resources.
| Proposed Amendment | Details |
|---|---|
| Total Amendments | 22 proposed amendments to the act |
| Purpose of Amendments | To update the funding distribution model (last amended 25 years ago) |
| Current Allocation | 75% to central government, 25% to local governments |
| Opposition Proposal | KMT and TPP pushing for increased funds for local governments |
| Legislative Review Process | Initial review completed, next step: inter-party negotiations |
| Key Controversy | Disagreement on fund allocation and political power |
Political Turmoil and Physical Altercations in the Legislature
On Wednesday, the Economics Committee of the Legislature passed the proposed amendments after a series of tense exchanges. KMT lawmaker Chen Yu-jen (陳玉珍), who heads the committee, announced that the bill had completed its initial review, signaling that it would proceed to inter-party negotiations. However, the proceedings were disrupted by physical altercations between DPP and KMT lawmakers. The brawl led to a brief adjournment, with the committee meeting lasting just three minutes.
DPP Spokesperson Wu Cheng (吳崢) condemned the altercations, accusing the opposition of trying to “paralyze Taiwan” by weakening the central government’s finances. Wu argued that the amendments were designed to drain central resources and diminish the government’s ability to govern effectively.
Meanwhile, opposition lawmakers, including KMT’s Lee Yen-hsiu (李彥秀), accused the ruling DPP of deliberately stalling the bill in order to maintain control over fiscal policies and delay necessary reforms.
A Divided Opposition: KMT and TPP’s Dilemma
Although the KMT and TPP both support changes to the funding law, the two parties have yet to agree on the specifics of the amendments. Both parties command a majority in the Legislative Yuan, but their lack of consensus has left the proposed bill in limbo.
TPP lawmaker Huang Shan-shan (黃珊珊) expressed hope for a response from the government to the proposed amendments, but she also acknowledged that the lack of alignment between the opposition parties could complicate the legislative process.
The Path Forward: Inter-Party Negotiations and Potential Delays
According to the Legislative Yuan’s review process, the bill will now be subject to inter-party caucus negotiations. If no agreement is reached within a month, the proposed amendments will be sent directly to the full Legislature for review and voting.
However, given the ongoing political gridlock, it remains uncertain when the bill will finally be enacted, and whether the amendments will make it through without further delays or revisions.
What’s at Stake: Central vs. Local Government Funding
The proposed amendments have profound implications for Taiwan’s governance. Under the current fiscal framework, central government agencies hold a disproportionate share of funding, leaving local authorities to struggle with fewer resources. Many local government officials have called for reforms to ensure a more equitable distribution of funds that would allow them to address local needs and public services more effectively.
On the other hand, the DPP argues that any reduction in central government funding could weaken Taiwan’s ability to respond to national crises or maintain key infrastructure projects.
FAQs on Taiwan’s Funding Law Amendments
Q: What is the Act Governing the Allocation of Government Revenues and Expenditures?
A: This law regulates how fiscal resources are divided between Taiwan’s central government and local governments. It has not been significantly updated in over 25 years, and the current distribution heavily favors the central government.
Q: Why are the amendments to this law controversial?
A: The amendments are controversial because they propose a shift in the balance of fiscal power, which is a politically sensitive issue. The central government currently receives 75% of the funds, and local governments are pushing for a larger share.
Q: What happened during the committee meeting on Wednesday?
A: Lawmakers from the KMT and DPP physically clashed during the meeting, causing a brief adjournment. The KMT and TPP are pushing for changes to the law, while the DPP has been accused of delaying the process.
Q: What’s the next step for the proposed amendments?
A: The proposed amendments will now go to inter-party caucus negotiations. If no agreement is reached within a month, the bill will go directly to the full Legislative Yuan for a vote.
Q: How could these amendments affect Taiwan’s local governments?
A: If passed, the amendments could provide local governments with more financial resources, allowing them to better address local issues such as infrastructure, education, and public health services.
