Taiwan Approves 2005 Central Government Budget with NT$1.63 Trillion in Expenditures

Strategic Insights -

Taipei's Executive Yuan has given the green light to the 2005 central government budget, which will see NT$1.63 trillion in expenditures and NT$1.4 trillion in revenues. The budget plan, which will be submitted to the Legislative Yuan for approval by the end of this month, forecasts a deficit of NT$232.9 billion, offset by the issuance of government bonds and the surplus after implementing this year's budget. Education, scientific, and cultural spending tops the list of categories, accounting for 19.4% of the total budget with NT$317.6 billion, an increase of 3.6% from this year's level.

Key Takeaways:

  • The 2005 central government budget in Taiwan will have NT$1.63 trillion in expenditures and NT$1.4 trillion in revenues, resulting in a deficit of NT$232.9 billion.
  • Education, scientific, and cultural spending will account for 19.4% of the total budget with NT$317.6 billion, a 3.6% increase from this year's level.
  • Social welfare expenditures will be second-highest, accounting for 17.7% of the total budget with NT$289.1 billion.
  • Economic development spending will account for 15.7% of the total budget with NT$257.4 billion.
  • National defense costs will account for 15.4% of the total budget with NT$251.9 billion.
  • The budget plan projects a 3.9% increase in revenues compared to this year's level, with tax returns experiencing the largest growth at 6.1% or NT$54.9 billion.
  • The government plans to offset the deficit through the issuance of government bonds and the surplus after implementing this year's budget.

Statistics:

  • Expenditures: NT$1.63 trillion
  • Revenues: NT$1.4 trillion
  • Deficit: NT$232.9 billion
  • Education, scientific, and cultural spending: NT$317.6 billion (19.4% of total budget)
  • Social welfare expenditures: NT$289.1 billion (17.7% of total budget)
  • Economic development spending: NT$257.4 billion (15.7% of total budget)
  • National defense costs: NT$251.9 billion (15.4% of total budget)
  • Revenue increase: 3.9% compared to this year's level
  • Tax returns growth: 6.1% or NT$54.9 billion

Sources:

  • ASIA PULSE, 19-08-1025.