||The 5 special metropolitans have been operated for nearly 3 year; however, many people believe that the merger brings disadvantages to Kaohsiung (KH) without any benefit and decreased central government’s subsidy, which made KH remain the worst off in terms of debt in Taiwan. The data ranging from 2 years ago to 2 years later (2010-2012) of the merger regarding fiscal revenue, fiscal expenditure and public debt will be adopted to analyze whether the merger will affect the fiscal situation and ability of KH Government in this paper. I found out that after the merger, although the fiscal deficit problem is serious, it didn’t deteriorate comparing to the fiscal situation before the merger. The fiscal revenue has kept increasing because the local tax revenue has been influenced by the Act Governing the Allocation of Government Revenues and Expenditures and the merger. In addition, the central Government has shifted funds to financing KH, so the revenue is increased on the same ground. In terms of fiscal expenditure, the labor cost accounted less and less of the self-financing resources, which shows that KH has more capacity to carry other establishment. |
After the merger, the social welfare related expenditures and fiscal responsibilities have increased substantially, and various infrastructures have been planning continuously in order to implement providing equal social welfare to the people in KH and Pingtung. In relation to fiscal expenditures, the local governments, on one hand, expect to obtain a greater amount from subsidy or the tax that distributed from central government; on the other hand, they also expand the debt space to make up the fiscal loopholes by “regarding government bonds and borrowing as revenue;” however, it relies on the central government too excessively and created “fiscal illusion” to the public. In order to enhance the local fiscal autonomy, except for developing local financial resources, reducing spending, improving expenditure structure and implementing pay-off plan are also required, so that a sustainable establishment and development can be made possible.