We have been consistently promoting relevant measures to reduce our deficit as well as control the scale of our debt. The total deficit of the Central Government General Budget and Special Budgets as a percentage of our GDP (deficit-to-GDP ratio) went from 1.6% in 2012 to 0.1% in 2017. In 2018 and 2019, there were surpluses between the annual revenues and expenditures, which accounted for 0.1% of the GDP in both years. However, in response to COVID-19, we adopted various relief and stimulus measures and expansionary fiscal policies in 2020 and 2021. The deficit-to-GDP ratios were 1.4% and 0.7%, respectively. In 2022, due to better-than-expected execution of the annual revenue, the deficit of the overall budget, including special budgets and the final account of the general budget, shifted to a surplus, with a surplus-to-GDP ratio of 0.3%.
    In 2023, in response to policy requirements, the Central Government's annual expenditures were moderately increased, resulting in a deficit ratio of 0.9%. In 2024, due to better-than-expected revenue performance and the government's continued efforts in implementing various source-broadening and cost-cutting measures, the surplus-to-GDP ratios was 0.4%.

     In 2025, due to the continued execution of special budgets and the need to respond to changes in international economic and trade policies and post-disaster recovery and reconstruction, three special budgets were approved, including the Strengthening the Resilience of the Economy, Society, and National Security in Response to International Developments; the Post-Disaster Recovery and Reconstruction Following Typhoon Danas and the July 28 Torrential Rainfall; and the Post-Disaster Reconstruction of the Matai'an Creek Barrier Lake in Hualien. This resulted in an overall budgetary revenue and expenditure deficit equivalent to 1.2% of GDP.

    In 2026, the amendment to the Act Governing the Allocation of Government Revenues and Expenditures, promulgated on March 21, 2025, which adjusted the allocation ratio between the central and local governments, resulted in a significant decrease in the Central Government's tax revenues. However, in order to address developments in domestic and international political and economic conditions and to align with current policy priorities, the scale of total budget expenditure has been moderately expanded, while special budgets continue to be implemented. As a result, the overall budget deficit-to-GDP ratio stands at 1.4%.

Annual Revenue, Expenditure, and Surplus or Deficit of the Central Government  

                                                                                                                         Unit: billion; %