Taiwan Government Amasses Huge Debts

.Taipei, Jan. 15, 2008 (CENS)--Taiwan's total government debts ran up to NT$5.1 trillion (US$159 billion at US$1:NT$32) as of the end of 2006, constituting 43.3% of the island's gross domestic product (GDP), according to the Directorate-General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan, or Taiwan's Cabinet.

For the first time, the Cabinet reckoned the island's total government debts based on international standards. Although the debts as a percentage of GDP did not become worse last year, the proportions remained higher than the 35.7% estimated by the government with narrow senses of government debts.

For a long time, the government has divided its debts into central government debts of over one-year maturity and local government debts. In 2006, the central government's over-one-year-maturity debts were around NT$3.5 trillion (US$109 billion), accounting for 30.5% of GDP. Total debts were boosted by local debts to NT$4.2 trillion (US$131 billion), making up 35.7% of GDP. The percentage was apparently underestimated from viewpoint of international standards.

By international standards, the DGBAS found the government debts piling up to NT$5.1 trillion in 2006. In spite of the bigger-than-actual debt number, DGBAS officials pointed out that the debts as a percentage of GDP declined to 43.3% from 2004's 44.9%, showing outstanding-debt incremental rate had been well confined.

Also, DGBAS reported that the government's budget deficit had shrunk to NT$77.5 billion (US$2.4 billion) in 2006 from 2004's NT$230 billion (US$7.1 billion) mostly thanks to tax surcharge and conservative government outlays.