TAIPEI (Taiwan News) — The Cabinet on Thursday (Aug. 22) approved a proposed central government budget plan that exceeds NT$3 trillion (US$93.75 billion).
The general budget proposal will see aggregate revenue and expenditure surpassing NT$3 trillion, setting a new record, per CNA. Key features of the budget include a defense budget of NT$647 billion, an increase in water management funds to NT$55.1 billion, and central government assistance to local governments reaching NT$724.1 billion, an increase of NT$89.5 billion from this year.
The aggregate revenue is set at NT$3.15 trillion, an increase of NT$428.2 billion compared to this year, primarily due to estimated income tax revenues of NT$329.1 billion. The aggregate expenditure is set at NT$3.13 trillion, an increase of NT$280.6 billion from this year. Overall, there is a surplus of NT$20.9 billion.
According to the Directorate-General of Budget, Accounting, and Statistics (DGBAS), the cumulative outstanding debt by the end of 2025 is estimated to be NT$6.81 trillion, which is 28.6% of the average nominal GDP for the past three years, a decrease of 1.1% from 2024, and 12% below the Public Debt Act limit of 40.6%. The general budget proposal is expected to be submitted to the Legislative Yuan for review by the end of August.
In terms of specific government functions, excluding various special budgets and funds, social welfare spending will be the highest next year at NT$831 billion (26.5%), followed by education, science, and culture at NT$605 billion (19.3%), economic development at NT$538.6 billion (17.2%), and defense spending at NT$647 billion (14.9%), with all four categories seeing increases compared to this year.
The increase in economic development spending is mainly due to an additional NT$20 billion allocated to the housing fund for social housing and subsidies, and NT$10.5 billion for the new provincial road improvement plan. The increase in education, science, and culture spending is attributed to the National Science and Technology Council's additional NT$12.6 billion for basic and non-basic research projects, and NT$5.3 billion for subsidies to local governments for teaching, research, and campus facility improvements.
The defense budget includes NT$476 billion for the Ministry of National Defense's (MND's) regular budget, NT$90.4 billion to purchase new fighter jets and enhance sea-air combat capabilities, and NT$80.6 billion for a non-profit special government fund, an increase of NT$46.4 billion, or about 7.7%, compared to 2024. As for whether the submarine mass production budget will be included in the 2025 budget, the MND said the plan is still under review.
Sports funding has also increased to accommodate the establishment of a new ministry of physical education and sports development next year. The Ministry of Education allocated NT$9.3 billion, including both for-profit and non-profit special funds, totaling NT$17.8 billion, an increase of approximately NT$2.5 billion from this year.
