The new government needs to act quickly, boldly and decisively. Starting with transitional justice and a reform of the pension system, Tsai's government must find ways to boost the treasury's coffers and reduce spending.
How should the government increase its revenue? First, a tax must be levied on remuneration packages paid to government-appointed directors and supervisors on the boards of profit-making enterprises owned, or part-owned, by the state. Examples are Taipei Fubon Commercial Bank and China Steel Corp. Every year these appointees receive remuneration packages worth several million New Taiwan dollars.
Second, the government must integrate the various state-owned funds, streamline management, share profits with the public and prevent the stripping or privatization of these assets. For example, the Wu Chih Foundation — known as the Taiwan Sugar Association before its privatization — is worth NT$27.7 billion, while Chunghwa Telecom Co and Chunghwa Post Co are worth tens of billions of NT dollars.
Third, state-owned land lying idle should be put to proper use and rent for civic organizations should be brought into line with market prices. The situation cannot be allowed to continue whereby state-owned land is rented out at less than 10 percent of market value.
Fourth, the Privately Owned Public Utilities Supervisory Act (民營公用事業監督條例) states that where the net annual income of a utility exceeds 25 percent of total paid-in capital, half of the surplus should be set aside for a "users' provident fund." However, Chunghwa Telecom's users' provident fund, worth NT$109.6 billion — and NT$15 billion at its privately operated power stations — has been misappropriated and must be recovered.
Finally, the new government must pass legislation to confiscate the Chinese Nationalist Party's (KMT) ill-gotten assets and order it and affiliated organizations such as the National Women's League and the China Youth Corps to return the assets.
Tsai's administration must amalgamate or wind down state organs that are unfit for their purpose, such as the Examination Yuan and Control Yuan.
Township mayors should be turned into government officials and local governments should become a second-tier government. This would not only increase administrative efficiency, it would also save NT$22 billion annually.
Scrapping the preferential 13 percent interest rate on the pensions of employees at state-run banks would save the treasury NT$4.6 billion annually.
Retired state employees who take up employment and receive a salary above a certain amount should not receive a state pension while they work.
Finally, combined party worker/civil service pensions should be abolished.
Hopefully the new government will use these means to restore the nation's finances and achieve a sustainable future for Taiwan.
