Taiwanese city faces S$140 million funding shortfall over two years

Keelung City officials are sounding the alarm over a significant financial shortfall, projecting a deficit of NT$14 billion over the next two fiscal years.

Mayor Ko Wen-je highlighted the issue, calling on the central government to ensure Keelung receives its rightful financial revenue. In response, the Keelung City Government convened a press conference where Secretary-General Hsieh Hsiao-kun detailed the city's financial situation. He stressed the administration's commitment to fiscal discipline and a "live within means" principle, aiming to balance prudent financial management with the city's long-term development and the continuity of citizen welfare and major construction projects.

The city's budget for fiscal year 116 outlines revenues of NT$26.09 billion and expenditures of NT$28.75 billion, resulting in a deficit of NT$2.66 billion. Given the limited financial resources, the city government is carefully reviewing its spending priorities to maintain financial stability while advancing municipal projects and ensuring citizen services.

Following amendments to the fiscal allocation law, Keelung's financial structure has seen adjustments. While the budget for fiscal year 116 increased to NT$26.09 billion due to funding for the Keelung MRT project, the overall financial resources have been progressively squeezed. Excluding the MRT project, the city's revenue has decreased annually since fiscal year 114, falling to NT$22.389 billion in fiscal year 116.

Despite the reduced revenue, the city government is prioritizing citizen needs and urban development. Key budget allocations for fiscal year 116 include NT$3.793 billion for the Keelung MRT project, NT$1.719 billion for elder care benefits, NT$500 million for civil servant salary adjustments, NT$415 million for improving primary and secondary school environments, NT$175 million for electric bus replacements, and NT$423 million for free lunch subsidies. The city plans to continue adhering to principles of "living within means, increasing revenue, reducing expenditure, and strictly controlling debt" to manage its finances effectively.

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The city team has always adhered to a high degree of fiscal discipline and the principle of 'living within means,' prudently planning various policies within limited resources, striving to achieve a balance between financial stability and the city's long-term development, ensuring that citizen welfare is not interrupted and major construction projects continue to advance.