"Government funds first, they said..." EV subsidies advance payment, a 'pie in the sky' on the ground.

*This content was translated by AI.

The government has revised guidelines to allow national subsidies to be prioritized even when local funding is insufficient to expand electric vehicle adoption, but frontline local governments are ignoring this due to concerns over fiscal burdens and administrative responsibilities, further confusing consumers.

◇ Guidelines say 'possible,' reality says 'impossible'… Consumers bear the brunt of disjointed administration

Recently, the Ministry of Environment opened the door to prioritizing the disbursement of national funds even when local funds are exhausted early or not secured, through its "Guidelines for Handling Subsidy Applications for Electric Vehicle Promotion Programs." This measure was taken to prevent consumers on the verge of taking delivery of electric vehicles from being unable to receive subsidies due to budget constraints faced by Local Governments.

However, our newspaper's investigation revealed that numerous Local Governments continue to maintain the stance that "advance funding from the national budget is impossible." In fact, Mr. A, who filed a complaint with one Local Government, expressed his frustration, stating, "Although I requested that at least the national budget be provided first in accordance with the Ministry of Environment's guidelines, I received only a response from the city hall stating that it is not feasible due to financial constraints."

◇ Local Governments Hold Back, Fearing Penalties of 'Budget Cuts'

The reason local governments are so passive is due to strict post-facto accountability. Under the current structure, if a local government fails to secure the matching local funds required after the national budget is advanced in advance, it faces severe sanctions, including ▲cancellation of the grant decision and a recovery order, and ▲reduction of the following year's national budget support.

A local government official stated, "If national funds are used first and the city budget department fails to secure local funds later, the project department alone must bear full responsibility," and added, "Government guidelines are merely recommendations; without the local government's fiscal capacity and cooperation from the budget department, it is structurally difficult to implement them unilaterally."

◇ Some also use the "drainage of local funds" as a shield against the concentration on specific brands.

Some critics argue that local governments are deliberately adopting conservative administrative measures to curb the dominance of specific brands or imported electric vehicles. This includes closing subsidy applications early or refraining from applying advance payment guidelines, aiming to prevent capital outflows.

Industry experts stated, "In a situation where the rapid rollout of electric vehicles is urgent to achieve carbon neutrality, the misalignment between the central government and Local Government is a factor that undermines policy credibility," and suggested that "it is urgent to prepare effective supplementary measures, such as mitigating Local Government risks arising from advance central funding or flexibly adjusting the local matching ratio."

Online communities related to electric vehicles are currently seeing opinions that manufacturers are reconsidering deliveries or postponing them to next year due to a shortage of subsidies. Under such circumstances, it is inevitable that the government's electric vehicle adoption targets will face delays.

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*This content was translated by AI.