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Taipei City Government Actively Use Financial Strategies to Improve Debt Management Performance

Taipei City Government (TCG) establishes and executes financial strategies for broadening sources of revenue and reducing expenditure to consolidate government’s debt structure. The strategies cover enforcing tax collection, implementing a rational user charge policy, enhancing treasury transferring and reducing interest costs of debt burdens. The participation of the private sector in the urban development projects and infrastructure adoption plans is also included to raise the required amount of funding and achieve government’s risk and cost objectives.

 

The Department of Finance (DoF) of TCG points out that TCG will strictly manage the limit of indebtedness and the outstanding debt in accordance with the Public Debt Act. 5% of the tax collected this year will be scheduled for the budget to pay off debts, and the city will also coordinate annual revenue and surplus from the previous year to pay off the debts additionally depending on the financial situation.

 

The total debt amount has been reduced by 18.2 billion NTD at the end of 2014. The DoF explains that the scheduled budget for paying off debt was 6.6 billion NTD. Furthermore, the successful tendering of development projects, the annual revenue and surplus from the previous year contributed to an 11.6 billion NTD additional budget to pay off debts.

 

In 2015, the total debt amount has been reduced by 8.6 billion NTD with a 6.6 billion NTD scheduled budget and a 2 billion NTD additional budget for paying off debt. The city's outstanding debt was 146.8 billion NTD when Mayor Ko took office in 2014, and decreased significantly to NT$138.2 billion NTD at the end of 2015. It is estimated that a 1.4 billion NTD supplementary budget will be laid for TCG to reach the debt reduction goal of 10 billion NTD.

 

The DoF affirms that TCG will keep actively using financial strategies to improve debt management performance, control outstanding debt and consolidate city's debt structure.