Cabinet OKs '14 budget plan with more spending, less revenue
CNATAIPEI -- The Executive Yuan on Thursday approved the central government's budget plan for 2014, which shows a 1.7-percent increase in expenditure and a 0.1-percent decrease in revenue.
August 23, 2013, 12:01 am TWN
Premier Jiang Yi-huah said that despite a revenue shortage, the government has maintained moderate expansion in spending, including a 10-percent increase in funding for public construction projects, as part of its effort to boost Taiwan's sluggish economy.
The budget plan will be submitted to the Legislative Yuan for approval by the end of this month, Jiang said.
In 2014, central government expenditure will reach NT$1.9407 trillion, up NT$33.1 billion from this year, according to the plan.
Social welfare spending will make up the largest share — 21.9 percent — of the expenditure, followed by education, science and culture, which together will account for 19.1 percent.
Defense spending will amount to 15.8 percent of the budget, and economic development 14.6 percent.
Defense spending as a percentage of gross domestic product will be 2.54 percent in 2014, down from 2.7 percent in 2013.
Central government revenue, meanwhile, is projected to decrease NT$2.5 billion to NT$1.7308 trillion, the first contraction in four years.
Tax revenue is expected to drop 0.7 percent to NT$1.2713 trillion, while revenue from fees will fall 36.5 percent to NT$59.4 billion. Asset income will increase 49.3 percent to NT$109.9 billion, and operating surplus and business income will rise 2.2 percent to NT$258.8 billion.
The NT$209.9 billion shortfall, along with NT$64 billion for principal repayment on debt, will be covered by new borrowing and the issuance of government bonds, according to the plan.