To better support local governments in finance by assisting in funding sources and financial effectiveness, the Ministry of Finance (MOF) convened the “Communication Meeting for Local Government Finances” on the 16th of this month. The fiscal heads of most local governments attended in person or appointed representatives to attend.

　　In the meeting, Minister Chuang Tsui-Yun issued awards to top performers in the 2022 Local Government Finance Management Support Scheme and urged local governments to strictly adhere to fiscal discipline and implement measures in cost reduction and revenue generation (especially review and adjustment of the property tax base) so as to enhance the robustness and sustainable development of local finances. She also inspired colleagues involved in local finances to rise to current challenges with innovative thinking in order to boost financial resources and gradually improve fiscal constitution.

　　To promote outstanding examples of cost reduction and revenue generation, and develop new thinking in finance, this meeting facilitated experience sharing by top performers. The New Taipei City Government explained its improvement of financial management by taking a number of effective measures not only to cut down expenses by conditioning the usage of public buildings and central disbursement, but also to increase financial sources by collecting the expenses for using the sewage drainage, permitting payment for purchases of floor area rights, as well as adjusting the announced land value and the assessed present value. The Hsinchu County Government shared its outcomes in debt management through borrowing the lower lending rate debts instead of the higher ones to save interest expenses as well as the other measures, including adjusting expenditures on social welfare and drafting the Debts Improvement Program to reduce debts actively. Furthermore, this meeting invited the Taipei Exchange to deliver a special presentation on the keynote topic “Issuing of the Local Government Bonds and Briefing for the Sustainable Government Bonds (SGBs)” in concert with the National Treasury Administration to introduce the laws, regulations, and practices combined with domestic and foreign examples of SGBs issuing. All fiscal heads of local governments recognized the contribution of the aforementioned presentations.

　　In the afternoon forum, the MOF paid much attention to the issue of amending the “Act Governing the Allocation of Government Revenues and Expenditures,” which is of some concern to some mayors and magistrates. However, the MOF will take into consideration the views of all parties and deliberatively review the allocation of revenues and expenditures by governments at all levels, considering the changed situation between central and local finances. Furthermore, as the Sustainable Development Goals have become a major global trend recently, local governments should pay close attention to SGBs. The MOF will continue to promote SGBs and assist local governments in issuing them. 

News release contact: Section Chief Lo, Ruihung                                                      
Tel: (02) 2322-8401