Taipei, July 23, 2008 (CENS)--The central government general budget will see a deficit of NT$170 billion (US$5.61 billion at US$1:NT$30.3), or over NT$150 billion (US$4.95 billion) if figured more conservatively, in the 2009 fiscal year, which would seriously stress the national coffer.

Earlier, the Finance Reform Commission had aimed to meet a balanced budget between 2007 and 2011. Over the past five years, the exasperating national financial situation has improved due to substantial growth in taxation revenues. For instance, the federal general budget in fiscal 2008 was kept to within a deficit of NT$97 billion (US$3.2 billion); but the deficit is expected to exceed NT$100 billion (US$3.3 billion) in fiscal 2009.

To offset inflation and global economic slowdown, the Executive Yuan (the Cabinet) plans to increase government expenditure to boost domestic economic growth. To meet the Cabinet`s goal, the Cabinet-level Directorate General of Budget, Accounting and Statistics (DGBAS) has preliminarily appropriated NT$1.86 trillion (US$61.38 billion) for national expenditure in fiscal 2009, up 6% from NT$1.78 trillion (US$58.74 billion) in the preceding fiscal year. On the other hand, the Ministry of Finance has appropriated NT$1.69 trillion (US$55.77 billion) from taxation revenues in fiscal 2009, up 6% from the preceding year.

The annual growth for either national expenditure or taxation revenues is much higher than the projected 4.78% annual economic growth for fiscal 2009.

(by Ben Shen)