TAIPEI (TVBS News) — The head of the Directorate-General of Budget, Accounting, and Statistics (DGBAS, 主計處) explained on Monday (Dec. 23) that the amendment to the "Act Governing the Allocation of Government Revenues and Expenditures" (財政收支劃分法) will lead to a 28% reduction in central government budget plans. The Executive Yuan (行政院) held a press conference on Monday to highlight the amendment's impact, which requires the central government to release NT$375.3 billion annually to local governments.
DGBAS Director-General Chen Shu-tzu (陳淑姿) noted that if defense spending remains untouched, other sectors will face further cuts, emphasizing a comprehensive review to align with Executive Yuan policies. Chen mentioned that without the budget for President Lai Ching-te's (賴清德) "Balanced Development throughout Taiwan" initiative, future balanced development could be impacted.
Furthermore, Chen stressed the importance of transferring funds alongside responsibilities to prevent local budget excesses, suggesting that central tasks such as old-age farmers' allowances should revert to local management. Finance Minister Chuang Tsui-yun (莊翠雲) highlighted ongoing efforts to gather local government feedback and engage with the Legislative Yuan to present a well-discussed amendment version, aiming to avoid disputes.
Chuang warned that imbalanced weight distribution could widen the urban-rural gap, underscoring the Ministry of Finance's commitment to maintaining fiscal resilience and discipline.