The Effects of Semiannual Closing Policy on Budget Execution：The Case of ROC Military Units

• Main Authors: Ching-Wan Liang, 梁經萬
• Other Authors: Jinn-Yang Uang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/44022723366034020461

碩士 === 國防管理學院 === 國防財務資源研究所 === 92 === Abstract The Semi-annual Closing Act (SCA) was introduced by the Executive Yuan to induce agencies to improve budget execution and, it is argued, thus to avoid potential budget consumption at yearends. To gain insight into how this new policy works in practice, I conduct an empirical study, using a sample of defense units over three fiscal years from 2001 to 2003. This research reaches the following major results. First, the introduction of the SCA increases first-half-year budget execution rate and therefore reduces second-half one, implying that the military operations are being better exercised in line with the budget plans after the SCA. Second, variance of monthly budget execution rates is significantly reduced after introducing the SCA. Third, budget size is negatively associated with budget execution rate, indicating that military units with larger budget size would experience more difficulty or higher pressure in terms of budget execution. Overall, my findings demonstrate that the SCA, in fact, is working as was intended, showing that regulators can influence and even change organization behavior by their policy.