ROC Cabinet readies 2016 budget plan

2015/09/23

The ROC government’s proposed budget for 2016 was presented to the Legislature Sept. 21, with total expenditures up NT$63.6 billion (US$1.94 billion) year on year to NT$1.99 trillion.

Education, infrastructure, social welfare and technology outlays comprise the bulk of the increase, which is required to fund government programs spurring domestic demand and promoting growth and competitiveness.

Premier Mao Chi-kuo said spending will only rise 3.3 percent next year, a modest sum in light of projected revenue growth of 3.8 percent. “The budget underscores government commitment to advancing a sustainable economy and enhancing the well-being of the people in a fiscally responsible manner.

“It also prepares Taiwan for the forecast global economic uptick and reflects our efforts to push ahead with industrial innovation and transformation.”

The biggest rises are social welfare spending, 5.9 percent to NT$467.1 billion, or 23.4 percent of the total; economic development, 5.5 percent to NT$274.1 billion, or 13.7 percent; education, culture and science, 1.9 percent to NT$390.1 billion, or 19.5 percent; and national defense, 1.7 percent to NT$311.1 billion, or 15.6 percent.

Another standout area is infrastructure, set to increase 5.5 percent to NT$189 billion, or 9.5 percent—a record high in 15 years.

“This mainly encompasses public transportation projects like highway and railway improvements, as well as metro line construction in major urban areas,” Mao said.

These projects, combined with NT$170.6 billion in additional expenditure on water resources and public works, are expected to substantially strengthen Taiwan’s economic fundamentals and promote balanced regional development.

Of the NT$1.84 trillion in revenue, tax collections of NT$1.44 trillion are set to make up 78.1 percent of the total, up 9.1 percent from the expected figure for 2015.

The budget deficit is estimated at NT$153.6 billion, down 2.8 percent year on year. This amount, along with debt repayments of NT$73 billion, will be financed by new bond issuances and borrowings, according to the Directorate-General of Budget, Accounting and Statistics.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=236940&ctNode=2194&mp=9)