Evaluation of Finacial Management: An Evaluation of a Plan to Improve Conitions of the Revenues and Expenditures of the Taiwan Provincial Government
Document Type
Master's Thesis
Date of Award
1997
Degree Name
Master of Arts
Format
Abstract
The fiscal policy of Taiwan is controlled by the National Government. The effectiveness of these policies not only affects the development of local governments but also the basic function of all levels of governments as well as the welfare of all citizens of Taiwan.
Since 1988, the government’s decreasing revenues combined with rapidly increasing expenditures has created serious budget deficits. The debt in 1989 rose to 141.4 billion NT dollars from a level of 20.3 billion in 1988. The debt continued to increase each year as follows: in 1991 to 251 billion, in 1993 to 319 billion, and finally to 458.8 billion by the end of June of 1995. This problem was given serious attention and discussed widely after a meeting of the National Legislature and after the Provincial Government in March of 1995 proposed a plan to balance the budget. The plan is to improve the financial system by strengthening the measures to balance the budget and pay off the debt. The goal of a balanced budget, was expected by June of 1996 and the total amount of debt was to be kept below 450 billion NT dollars. Finally, the plan hoped to continue the development of construction projects and to fulfill the needs of the people.
This paper is concerned with the mid-term evaluation of these goals of improving the financial management. The focus is on evaluating a current and effective method to the improve the government’s balancing of the budget.
The result is a more sound solution based on the proposal made by the Taiwan government in 1995. The budget of expenditures and the expected benefits have been effectively executed in the year and a half since then. As a matter of fact, the burden on the government’s financial resources has been reduced. To continue this reduction and reach the goals set forth in the plan, teamwork by all departments of the government is needed. Even though the steps of the plan are fair to all parties concerned, as December 1996, the final goal is still far from sight; therefore, the following ten suggestions will be helpful for the future promotion of this plan.