As per the Taiwan budget 2012 that has been recently approved by the Cabinet, total expenditure will amount to 1.9390 trillion New Taiwanese dollars. The government estimates that it will earn NT1.7295 trillion dollars or 59.84 billion US dollars.
Highlights of Taiwan Budget 2012:
The Directorate General of Budget, Accounting and Statistics (DGBAS) expects that in 2012 Taiwan s revenues will increase by 5.1 percent but its expenses will go up by 8.4 percent. In 2011 fiscal Taiwan is expected to earn 1.65 trillion New Taiwanese dollars. The expenses for the present fiscal have been projected at NT1.79 trillion dollars.
The Taiwanese government has an economic stimulus package that includes a public construction program and supports labor and health insurance programs.
All these factors as per the Taiwanese Premier Wu Den-yih, have led to the increase in expenses for 2012 fiscal.
In 2012 the public expenses could decrease by 30.9 billion Taiwanese dollars if the special budgets are considered; budgetary shortfalls can come down by 33.1% to touch the NT114.6 billion dollars.
Wu says that this will be the third time that such a decline is happening.
Shih Shu-mei, a DGBAS minister, has stated that 72.3 percent of the revenues for 2012 fiscal will be generated through taxes. This will translate to 1.2501 trillion New Taiwanese dollars.
Compared to the tax revenues for 2011 fiscal it means an increase of 6.9 percent or NT81 billion dollars.
Shih has said that property taxes will generate 92.4 billion New Taiwanese dollars in 2012, which will be 16.5% or NT$13.1 billion more than the property earnings for 2011 fiscal.
Shih has also said that 407.2 billion New Taiwanese dollars will be spent for the social welfare projects. This will make up 21 percent of the overall expenses the biggest portion of Taiwan s public expenditure for 2012.
Expenses in educational, cultural and scientific initiatives will comprise 18.9 percent of Taiwan budget 2012 and will amount to NT367.4 billion.
309.6 billion New Taiwanese dollars will be spent for defense, and this will comprise 16 percent of aggregate expenses of the national government in 2012 fiscal.
NT276.6 billion dollars will be spent in 2012 for developmental purposes and this will take up 14.3% of the overall expenses.
The Cabinet has proposed that the budgetary deficit be increased to 210 billion New Taiwanese dollars or $7.25 billion. In 2011 the expected budgetary deficit is NT142.6 billion dollars.
Expectations from Taiwan Budget 2012:
It is expected that in 2012 fiscal the Gross National Income (GNP) of Taiwan will amount to 14,795,990 million New Taiwanese dollars. In 2012 Taiwan s per capita GNP will be NT636768 dollars.
Taiwan 2012 Defense Budget:
Pan Kung-Hsiao, a Taiwanese air force spokesman, has stated that as part of Taiwan s 2012 defense budget, the national government will be improving its F-16 fleet. The Taiwanese government is also hopeful that it will be able to procure upgraded fighter jets from the US.
The Obama administration has opted to improve the 146 F-16A/Bs, which were made by the US and are presently owned by Taiwan. These jets were obtained a decade back.
While speaking to the media, Pan stated that they were yet to receive an official confirmation of the US agreement to assist with its fleet upgradation but the military will request the policymakers to provide the necessary financial resources that will aid in the improvement of its overall arsenal.
The Taiwanese military is presently intent on buying f-16 C/Ds instead of improving the A/Bs because they are more suitable for their defense strategies and operations.
Taiwan 2012 Cultural Budget:
Ma Ying-jeou, the President of Taiwan, has expressed his apologies for being unable to allot 4 percent of the 2012 for cultural initiatives. Chuang Po-chun, who is the director of Culture and Communication Committee, Chinese Nationalist Party, has stated that the allocation was not made as a result of several natural disasters and global economic condition.
Chuang has pointed out, though, that Taiwan has been increasing its allotment for the cultural sector every year and expressed hope that in the future the government will able to attain the 4 percent mark with better efforts. He has also stated that the government will need to amend its cultural policies.
According to Chuang the present administration allots approximately 10 billion New Taiwanese dollars, whereas the previous Democratic Progressive Party administration earmarked NT5 to NT6 billion dollars for the sector. He has said that in 2012 the amount will increase.