TAIWAN CABINET APPROVES RECORD DEFICIT BUDGET
The Taiwan cabinet approved a record
deficit budget calling for government spending of 479.67
billion Taiwan dlrs in fiscal 1987/88 starting July 1, a
cabinet statement said.
    The budget, which has been submitted to parliament for
approval in May, represents an increase in spending of 11 pct
over the 432.06 billion dlrs budgeted for the current year.
    The deficit will widen by 33 pct to a record 73.97 billion
dlrs from 55.6 billion in the current year.
    Spending on defence and foreign affairs, traditionally
combined, will be 175.92 billion dlrs against 160.33 billion.
    Social affairs will receive 85.37 billion dlrs against
71.76 billion. Economic construction and communications will
receive 82.68 billion against 85.49 billion, and education
62.21 billion compared with 54.34 billion.
    Public debt repayments will rise to 23.91 billion dlrs from
17.86 billion.
    Central government revenue from business and personal tax
and sales from the government alchohol and cigarette monopoly
will be 262.52 billion dlrs, 54.7 pct of the total.
    Income from state-owned corporations will be 99.50 billion
dlrs, accounting for 20.8 pct of the total.
    Income from sales of property and fines imposed by the
government will bring in 28.59 billion dlrs, 5.9 pct of the
total.
    The 1987/88 deficit will be covered by the issue of
government bonds worth 59.5 billion dlrs and a budget surplus
of 13.54 billion from the current year.
    The cabinet allocated 16.92 billion dlrs to cover a 10 pct
rise in civil service salaries.
    Central government revenue, excluding proceeds from sales
of government bonds, but including the carried over current
year budget surplus, will rise 6.6 pct to 419.24 billion dlrs.
    Total capital investment by the central government, local
governments and state-owned corporations will increase 38 pct
to 330 billion Taiwan dlrs, the statement said.
    Capital investment covers 14 major construction projects,
including several coal-fired power stations, highways, a
naphtha cracking plant and an underground railway.
 REUTER
