Taiwan 2002

		Government
		Provincial Government Budget Allocation All governments from the central down to the county/city levels are required to submit their budget bills for review by the legislative body at their respective levels three months before the beginning of each fiscal year. Cities under county jurisdiction and urban and rural townships are required to submit their proposed budgets to their respective representative offices two months in advance. Funding for these budgets comes mainly from national and local taxes, which are proportionally allocated to each government level, in accordance with the Law Governing the Allocation of Government Revenues and Expenditures 財政收支劃分法. Each year, the Executive Yuan reviews the financial conditions of each government level and may revise the law to adjust the percentage of tax revenues to be appropriated to the different levels of government. The tax revenues shall, however, account for an appropriate proportion of the fiscal expenditures at each government level, which is also required to maintain a certain proportion of local financial resources. The figures for these two proportions, which are proposed by the Executive Yuan, require the approval of the Legislature. On July 19, 2000, the Executive Yuan announced the new tax revenue ratio allocated to each level of local government. According to the new ratio, 39 percent of the tax revenue was distributed to county/city government in fiscal year 2001, a 4 percent increase over the previous year. The rural and urban townships obtained 12 percent of the tax revenue since the Taiwan Provincial Government no longer has any major responsibilities to local governments. However, the percentage for the special municipalities of Taipei and Kaohsiung was reduced from 47 percent to 43 percent. The central government was holding 6 percent of the revenue as an emergency reserve, while reducing the allocations for Taipei and Kaohsiung. The same tax revenue ratio will also apply in fiscal year 2002. The local county/city governments not only requested a fair distribution formula based on population, area, financial needs, and efforts made in boosting revenues, but also demanded an allocation of the entire business tax revenue. The Executive Yuan also encouraged local governments to develop their own sources of income, such as lotteries and taxes on alcohol and cigarettes. Under the Self-governance Law for Provinces and Counties 省縣自治法, and the Municipal Self-governance Law 直轄市自治法, local governments from the provincial level down may increase their revenues by levying taxes or charging fees for specific purposes in the areas under their jurisdiction. The fees may be charged in accordance with pertinent regulations or with the approval of the legislative body or representative conference at that level of government. As the supervisory organization of provincial and municipal self-governance, the Executive Yuan may provide subsidies or financial aid to the said governments with the approval of the Legislative Yuan. Such subsidies or financial aid may be cut if the government concerned does not levy taxes or fees which are permitted under the law. This is also true for governments of counties, provincial municipalities, county municipalities, and urban and rural townships. Such subsidies and aid are provided with the approval of the respective county/city council or representative conference. The provincial government may demand funding for such purposes from counties/cities that are in better financial conditions. A provincial government is the highest local administrative organization prescribed by the Constitution of the Republic of China. Although the ROC Constitution designates 35 provinces, Taiwan is the only one complete province under the effective control of the ROC. The Fujian Provincial Government, headquartered in Kinmen County, has delegated most of its powers to county governments. The Role of the Provincial Government At the end of 1996, the National Development Conference was convened to draft a plan for development in the new century. In this conference, the following measures to streamline the provincial government were proposed: The functions, operations, and organization of the provincial government should be reorganized and streamlined; a committee to plan and implement these projects should be established; and elections for provincial offices should be suspended starting from the second term. Elections for rural township, urban township, and county municipality offices should be suspended, and the heads of these townships and municipalities should be appointed in accordance with the law. The offices of deputy magistrate (for counties) and deputy mayor (for provincial municipalities) should be created, and greater power delegated to the county and provincial municipality governments. The legislation governing local taxes and the revision of the Law Governing the Allocation of Government Revenues and Expenditures should be completed quickly in order to provide an effective financial base for local governments. The foregoing projects were instituted by constitutional amendment in July 1997, providing the legal foundation to streamline the Taiwan Provincial Government (TPG). The first phase of the plan involved the appointment of Chao Shou-po 趙守博 as the new provincial governor to succeed popularly elected Taiwan Governor James Soong 宋楚瑜, whose term in office expired in December 1998. Gubernatorial elections were indefinitely suspended, making Mr. Soong the first and only popularly elected Taiwan Provincial Governor in the ROC history. The incumbent Taiwan Governor is Fan Kuang-chun 范光群. The plan entered a second phase on July 1, 1999, with a structural adjustment. The TPG has been downsized and divided into six sections, five offices, two committees, and 13 affiliated organizations. The 149 administrative units, 36 health-care organizations, and 170 provincial high schools originally listed under the provincial administration have been recategorized as units of the central government. Also, 58 organizations were either eliminated or merged. Altogether, 16 former TPG departments were transformed into the regional offices of the ministries and agencies under the Executive Yuan and three under the Examination Yuan. By the end of 2000, all restructuring have been completed. After January 1, 2001, the organization, functions and administrative affairs of local-level governments have returned to normal, in accordance with regulations in the Law on Local Government Systems 地方制度法, which was passed by the Legislature on January 25, 1999. Article 9 of the Additional Articles of the Constitution stipulates: The system of self-government in the provinces and counties shall include the following provisions: (1) A province shall have a provincial government of nine members, one of whom shall be the provincial governor. All members shall be nominated by the president of the Executive Yuan and appointed by the president of the Republic. (2) A province shall have a provincial advisory council made up of a number of members, who shall be nominated by the president of the Executive Yuan and appointed by the president of the Republic. (3) A county shall have a county council; members of which shall be elected by the people of the said county. (4) The legislative powers vested in a county shall be exercised by the county council of the said county. (5) A county shall have a county government headed by a county magistrate who shall be elected by the people of the said county. (6) The relationship between the central government and the provincial and county governments. (7) A province shall execute the orders of the Executive Yuan and supervise matters governed by the counties. The modifications of the functions, operations, and organization of the TPG may be specified by law. The Provisional Statute on the Adjustment of the Function, Business, and Organization of the Taiwan Provincial Government The Provisional Statute on the Adjustment of the Function, Business, and Organization of the Taiwan Provincial Government 臺灣省政府功能業務及組織調整暫行條例 was passed in October 1998, and suspended all provisions for provincial autonomy in the existing Self-governance Law for Provinces and Counties effective December 21, 1998. After streamlining the provincial government, the central government assumed all of its assets and liabilities. The statute provides a two-year deadline for the completion of the streamlining process. The downsized provincial administration is now a branch of the central government. The statute also states that regulations governing the streamlined provincial administration should be issued by the Executive Yuan and acknowledged by the Legislature. Two additional bills were passed in 1999 on the downsizing project: a new Law on Local Government Systems and a revised version of the Law Governing the Allocation of Government Revenues and Expenditures. The Fujian Provincial Government The ROC government administers only two counties in Fujian Province: Kinmen County, which includes Kinmen, and Lienchiang County, which includes Matsu. In July 1956, the ROC military assumed full administrative responsibility for these two counties. Military administration lasted until August 7, 1992, when President Lee Teng-hui promulgated the Statute for the Security and Guidance of Kinmen, Matsu, and the Pratas and Spratlys Areas 金門、馬祖、東沙、南沙地區安全及輔導條例. The return of local autonomy to Kinmen County and Lienchiang County is part of the ROC's recent constitutional reforms. The residents of these counties now have the same rights and freedoms as all people in Taiwan. Like its Taiwan counterpart, the Fujian Provincial Government has a council. Fujian Governor Yen Chung-cheng 顏忠誠 presides over the council when it convenes. The Kinmen County Government is responsible for the administration of six rural and urban townships, which are subdivided into 37 villages and boroughs. Although elections for township magistrates and village mayors as well as for representatives of the local and central governments have been held regularly since 1971, local self-government was fully implemented after the area was formally demilitarized in 1992. The first popular election for county magistrate took place in November 1993, followed by an election for county council in January 1994. Lienchiang County contains four urban and rural townships, subdivided into 22 villages and boroughs. Like Kinmen County, Lienchiang County held its first popular election for county magistrate in November 1993, followed by an election for county council in January 1994. This elected council took office on February 1, 1994, replacing the Provisional Lienchiang County council set up on November 7, 1992. The incumbent magistrates of Kinmen and Lienchiang counties are Lee Chu-feng 李炷烽 and Chen Hsueh-sheng 陳雪生 respectively. Copyright (C) July 2002, Government Information Office.   All rights reserved.   Site design by L.F. Lee Best viewed with Netscape 4.x or IE 5.x (medium font) at 800 x 600 True Color (32 bit) resolution