Under a Ministry of Finance plan, the government's income and expenditures are expected to be balanced by 2011, Minister of Finance Lin Chuan (林全) said yesterday.
In a report to the legislature's Finance Committee, Lin said his ministry is pushing forward with reforms in finance and taxation, and is improving the management of the government's debts.
Noting that the government will have a debt of NT$3.68 trillion (US$109.87 billion) by the end of this year, Lin said the government's annual outlay as a percentage of GDP has decreased from 17.3 percent in 2001 to 15.6 percent this year, which represents a slowdown in the accumulation of government debt.
Meanwhile, the government's annual revenue as a percentage of the GDP has decreased from 14.8 percent in 2001 to 12.4 percent this year.
Lin said the ministry is pressing ahead with 60 programs aimed to better the country's finances in the short, middle and long term.
Tax reforms include a controversial program to strip retired military personnel, civil servants and teachers of their tax-exempt privileges and the launch of a maximum tax system, which is pending final approval by the legislature, Lin said.
He dismissed some lawmakers' concern that the plan to better the government's finances could fizzle out if he is removed from his job in a Cabinet reshuffle, which seems to be likely in the wake of the last Saturday's elections.
RSS