Influencing Factors of the Budget Approval of the Central Government in Taiwan: FY 1981 ~ 2013
Date Issued
2015
Date
2015
Author(s)
Liu, Xiu-Xiu
Abstract
In recent years, the public debts have increased continually as a result of the annual budget deficits, and the Legislative Yuan often finishes budget approval with delay. Besides, incidents of violence that happened in the process of budget approval are frequently reported. For the foregoing reasons, the budget approval of the central government in Taiwan has attracted great attention of society. However, contrary to the public’s concern, the existing studies on that topic are insufficient both qualitatively and quantitatively. Therefore, this paper focuses on the influencing factors of the budget approval of the central government in Taiwan with the data by agencies from FY 1981 to 2013 to find out what affect the approval of the government agencies’ total, current and capital expenditures and their specific influences. Moreover, the methods of literature review and quantitative analysis are adopted with the part of quantitative analysis mainly including descriptive statistics and regression analysis. In the section of descriptive statistics, the development and cut ratios of the total, current and capital expenditures among 34 ministries during 33 years are analyzed and compared, while in the section of regression analysis, based on the literature review an empirical model is built, and the corresponding hypotheses are established. Furthermore, in line with the data’s properties, the Stata syntax of xtscc is employed in the regression to explore the influences of the political, economic, fiscal and legal factors on the approval of the central government’s general budget. It is found that the annual total and current expenditures demonstrate a fluctuant growing trend, and the differences between the current and capital expenditures gradually increase. In addition, the average cut ratio and variance of the capital budget both exceed those of the current budget. Beyond that, the cut ratio of the government agencies’ total budget depends on their capital budget’s share and the degree of social concern. The regression result shows that the divided government, the rate of non-ruling parties in the Legislative Yuan and the time factor all have no significant influences, but both of presidential and legislative elections’ influences reach the significant level. Additionally, the influence of the economic growth rate on government agencies’ total and current expenditures’ approval, and that of the lifting of martial law on capital expenditures’ cut ratios also have statistical significance. Nonetheless, the Public Debt Act and the budget surplus rate only significantly influence the approval of the current budget, and except the capital budget, incrementalism exists both in the approval of total and current expenditures.
Subjects
CENTRAL GOVERNMENT
GENERAL BUDGET
BUDGET APPROVAL
TOTAL EXPENDITURES
CURRENT EXPENDITURES
CAPITAL EXPENDITURES
Type
thesis
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