Department of Special Fund Budget

  • Post date:2012/4/30
  • Update date:2013/1/7

The Department is composed of 5 sections, which are in charge of the planning and preparation of the central government special fund budgeting, review of each special fund budget, supervision over implementation of the budgets, revision of budget-related laws, regulations and operating procedures, supervising the budget preparation and implementation of the foundation, trust fund and administrative corporations established or donated by competent authorities, as well as supervising budget affairs of county /city special funds.

1. Preparing and reviewing special funds budgets

The Department carefully scrutinizes the preparation of special funds budgets to raise the quality. The review of special funds budgets hinges is based on whether each of the funds is self-sustaining or the special fund surplus targets, key investments and the amounts to be submitted to the state treasury are reasonably determined according to the government's fiscal needs and to maintain a sound surplus in the treasury.

2. Completing the special funds budget system

The special funds budget system is closely related to the use of resources by the government. In order to improve efficiency, funds are divided into Enterprise funds (state-owned enterprises and operations funds) and Governmental special funds (debt service, special revenue and capital project funds). Different measurement bases, budgetary policies, preparation principles and priorities, budgetary indicators are used to express the different characteristics and policy priorities of each fund. Budgets from various types of special funds are then further consolidated for completion.

3. Establishing a Self-Financed Public Works Budget System

The Self-Financed Public Works Budget System Implementation Scheme has been set up to improve the management of infrastructure projects and to ease the government's financial burden. Under the Scheme, the principle is to encourage the participation of the private sector to invest in projects that generate income (“self-financed public works”) that have previously drawn heavily from the general budget and the special budgets.

4. Strengthening rules governing management of special funds budgets

The Department is charged with the task of strengthening the rules governing management of special funds budgets so that budget implementation can be effectively monitored and the government efficiency in the use of overall financial resources can be improved. Key items of this responsibility include abiding by Direction for Special Fund Management of Central Government, urging all administrative agencies to observe the rules regarding special funds governance instatement, mergers, revenues and expenditures keeping feasibility in mind; formulating and revising Regulations for Revenues, Expenditures, Safeguard and Utilization as the basis for the handling of revenues and expenditures of individual funds; revising the Directions for Implementation of Subsidiary Agencies Budget of Central Government as the basis for the budget implementation of various funds; and revising Directions for management of Central Government Special funds Participation in Private Investments as the basis for investment and management of various funds.

5. Monitoring implementation of special funds budgets

The implementation of special funds budgets is primarily based on the Budget Act, Accounting Act and Directions for Implementation of Subsidiary Agencies Budget of Central Government. After the budgets are approved by the Legislative Yuan, Stage-by-stage execution plans, and revenues and expenditures estimates are prepared and sent to the administrative agencies for review and, once vetted, decision become the basis for execution and evaluation. To determine whether budgets have been implemented effectively and to raise budget execution performance, the “responsibility center” system has been introduced. The performance of various responsibility centers is objectively evaluated, which serves as the basis for determining performance rewards.

6. Supervising the budget preparation and implementation of the local government special funds

To supervise the budget preparation and implementation of all the local government special funds, the Department drafts and announces Directions for Preparing Subsidiary Agencies Budget of the Local Government General Budget, Budget Standards for Common Items and Directions for Implementation of Subsidiary Agencies Budget of Local Government, which are the basis for the budget preparation and implementation of all the local government special funds.

7. Supervising the budget preparation and implementation of the foundations, trust funds and administrative corporations established or donated by administrative agencies

To set up common regulations for the budget preparation and implementation of the foundations, trust funds and administrative corporations established or donated by government, the Department revises Notices for foundations to compile the annual budgetary statement for submission to the Legislative Yuan, Notices for the budget implementation in the case of not being approved by the Legislative Yuan, Notices for the budget compilation of the trust fund and Notices for administrative corporations to compile the annual budgetary statement for submission to the Legislative Yuan and so on, which are the basis for the foundations, trust funds and administrative corporations to follow.
The Department also supervises the competent authorities to submit annual budgetary statement, operational and fund utilization plans to the Legislative Yuan for deliberation, while these competent authorities are responsible for supervising and managing their subordinate foundations , trust funds and administrative corporations.