| Summary: | 碩士 === 國立中正大學 === 政治學系政府與公共事務碩士在職專班 === 107 === The local governments have financial difficulties. But due to factors such as regulations, geographical environment and economic development, it is not only difficult to increase profits, but also difficult to reduce expenditure. They must rely on central subsidies. Among the 22 counties and cities in the country, 13 counties and cities have fiscal deficits, and as of the end of 2016, Yilan County and Miaoli County have severely exceeded their debt limit, and four other counties and cities are close to the debt ceiling. Therefore, the centrally-funded tax revenues have become a weapon for the central government to control the local governments. The current allocation of centrally-funded tax revenues was proportionally distributed first and then based on the formula. 94 percent (of which 61.76 percent of the total amount is allocated to the municipalities, 24 percent is allocated to the counties (cities), and 8.24 percent is allocated to the townships) of the total amount of tax funds redistributed by the central government to the local governments shall be recognized as “general centrally-funded tax revenues.” The remaining six percent shall be recognized as “special centrally-funded tax revenues.” After the distribution according to the above ratio, counties and cities are allocated by the formula. It is not only insufficient but also more uneven. As a result, the local governments need to rely on the central subsidies to flatten the huge gap between income and expenditure.
The central government in Taiwan has concentrated its power and pooled money, and the local governments have been suffering from deficiency of financial resources for a long time. Therefore, there is a suggestion that the “Act Governing the Allocation of Government Revenues and Expenditures” should be amended. Further more, during the era of democratization, it is normal to have blank cheques before an election. Many policies are “central treat and local pay.” For example, reducing the rate of estate and gift tax is indeed a gift for the voters, but this is not only affecting the total tax revenue of central government, but also affecting local tax revenues. In addition, adjusting salaries for the government employees makes the local finances getting more and more difficult than before.
This paper intends to examine the current distribution structure of central and local finances in Taiwan by studying the relevant literature on the division of central and local fiscal authority. And then, evaluating whether the systematic design of “centrally-funded tax revenues” can solve the vertical and horizontal fiscal allocation problems or not. Moreover, the author is trying to put forward his own modified version of the “Act Governing the Allocation of Government Revenues and Expenditures”. Just as the scholars said, “not only to give power, but also financial-resources.” In this way, the spirit of local autonomy in “Local Government Act” can be really implemented.
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