The deficit in the ROC government’s draft 2012 budget is projected at NT$231.3 billion (US$7.61 billion), down NT$114.6 billion from 2011, marking the third consecutive year of decline, Premier Wu Den-yih said in a report to the Legislative Yuan Sept. 26.
“This illustrates that the proposed budget for next year takes into account both the needs of national development as well as stability in the government’s finances over the midterm,” Wu stated.
Projected government revenue has been calculated at NT$1.73 billion, marking an increase of 5.1 percent over the level for 2011, while total expenditures, including the special budget, will be NT$1.96 trillion, down NT$30.9 billion, or roughly 1.6 percent.
Amid the stable economic recovery, Wu said, the government will work to alleviate its debt burden accumulated during the recent global financial meltdown, with special budget allocations in the 2012 budget being decreased by NT$30.9 billion from the previous year’s level.
A total of NT$407.2 billion has been earmarked for social welfare spending in 2012, up by NT$38.9 billion year on year and a record high, Wu said.
Defense spending will also be increased by NT$23.3 billion next year, which will help address the nation’s security needs, he said.
Wu pointed out that Global Insight has forecast global economic growth for 2011 to drop to 3 percent before rebounding slightly next year to reach 3.4 percent.
Amid growing international trade and increasing outsourcing by foreign high-tech firms, Taiwan exports should be able to maintain growth momentum, Wu said. The domestic economy is therefore expected to grow mildly by 4.8 percent this year and 4.6 percent next year, he added. (SB-THN)