TAIPEI (TVBS News) — President Lai Ching-te (賴清德) unveiled Taiwan's fiscal strategy for next year Thursday (Aug. 21), emphasizing strict fiscal discipline amid mounting domestic and international economic pressures. The president announced on Facebook that the central government budget prioritizes citizen welfare while maintaining financial stability during turbulent times. Taiwan's leadership demonstrated commitment to easing economic burdens on residents through careful budget planning despite challenging global conditions affecting the island's fiscal landscape.
President Lai praised Premier Cho Jung-tai (卓榮泰) and his administrative team for crafting the 2024 Central Government Budget (中央政府總預算案), which Taiwan's cabinet the Executive Yuan (行政院) approved Thursday morning. The budget confronts substantial obstacles from diminished central financial resources after new financial allocation legislation took effect. Ongoing Taiwan-U.S. tariff negotiations add complexity to fiscal planning as the government navigates competing economic pressures while maintaining budgetary commitments.
The budget establishes five key priorities, emphasizing fiscal discipline while reducing citizen economic burdens through strategic spending. Revenue targets NT$2.8623 trillion (around US$94.2 billion), down NT$302.5 billion (around US$9.9 billion) from current levels due to the new Act Governing the Allocation of Government Revenues and Expenditures (財劃法). Expenditures reach NT$3.035 trillion (around US$99.8 billion), requiring NT$400 billion (around US$13.2 billion) in debt financing to bridge the gap between income and spending commitments.
Defense spending surpasses 3.3% of GDP with a 20.1% increase totaling NT$949.5 billion (around US$31.2 billion), demonstrating Taiwan's self-defense commitment. The Ministry of Health and Welfare (MHW, 衛福部) receives NT$20.3 billion (around US$668 million) additional funding for Long-term Care Plan 3.0. President Lai emphasized the budget's importance in policy implementation, directing his team to submit it to Taiwan's parliament the Legislative Yuan by August's end. ◼ (At time of reporting, US$1 equals approximately NT$30.4)