To better support local governments in finance by assisting in funding sources and financial effectiveness, the Ministry of Finance convened “Communication Meeting for Local Government Finances” on the 17th of this month. The financial heads of most municipalities and city/county governments attended in person or appointed representatives to attend.  

　　This communication meeting facilitated experience sharing by top performers in the 2021 Local Government Finance Management Support Scheme to assist local governments in expanding funding sources, developing new thinking in finance, and constructing innovative approaches. This was started with Taitung County Government sharing its experience in debt management and achievement in debt control over the recent years. To enhance finance effectiveness and reduce debts, Taitung County Government exercised strict control on financial leverage, enhanced working capital management, and promoted a variety of measures in cost reduction and revenue generation. Such measures include earth-rock landscape maintenance taxes, administrative permit fees for sand and gravel excavation, development of tax revenues by attracting businesses, outsourcing of venues/facilities management, and infrastructure development by inviting private-sector resources.   

　　The best performer in financial management, Taoyuan City Government, also introduced its sweeping measures in cost reduction and revenue generation. These measures include the adjustment of property tax bases, taxes on gravel excavation and surplus gravel from construction works; enhancement of tax audits; a collection of overdue/underpaid taxes; activation of idle assets; encouragement of private sectors to participate in public infrastructure; centralization of payment collections by setting up a dedicated fund account; electronic payments to the centralized account; and flexibility in working capital management. All these measures have effectively cut down expenses and achieved great results.

　　To help local governments in the reasonable assessment of housing tax bases and tax rates, this communication meeting provided an update on housing tax bases and tax rate assessments by local governments and advocated the measures promoted by the Ministry of Finance. Tainan City Government and Kaohsiung City Government shared their experiences in order to assist other local governments in the reasonable assessment of housing tax bases and tax rates.

　　Finally, Minister Su Jain-rong issued awards to top performers in the 2021 Local Government Finance Management Support Scheme and urged local governments to implement measures in cost reduction and revenue generation to enhance the robustness of local finances. He also inspired the colleagues involved in local government finances to rise up to the current challenge with innovative thinking in order to boost financial resources and financing effectiveness.

News release contact: Section Chief Luo Ruihong

Tel.: (02) 2322-8401