The Executive Yuan on Thursday approved draft amendments to the Act Governing the Allocation of Government Revenues and Expenditures. Proposed by the Ministry of Finance (MOF), the bill aims to ensure the nation's sustainable development and people's well-being, and will be submitted to the Legislative Yuan for deliberation.
Premier Cho Jung-tai said that the Legislative Yuan's amendments to the Act on December 20, 2024, gave rise to three major issues: inconsistency between the statutory wording and the allocation formula, inequitable allocation between the central and local governments, and imbalanced allocation among local governments. On November 14, 2025, the Legislative Yuan amended the act again, further widening the urban-rural divide and intensifying wealth concentration. The premier added that the two rounds of amendments combined would require NT$563.8 billion (approximately US$18 billion) in debt, exceeding the 15% ceiling set under the Public Debt Act.
Premier Cho emphasized that the MOF's proposed amendments address both central and local governance needs, aiming to safeguard the nation's sustainable development and public welfare while promoting balanced regional development across Taiwan. The proposed legislation aligns fiscal resources with administrative responsibilities to help foster a more balanced quality of life, more rational vertical distribution, more equitable horizontal distribution, stronger local autonomy, and enhanced partnership between the central and local governments.