Central Government General Budget: How NT$3 Trillion is Allocated and Where the Legislature Cuts

30-Second Overview: The FY2025 central government general budget was proposed at NT$3.1325 trillion; following a third reading on January 21, 2025, the Legislative Yuan implemented a record cut of NT$207.5 billion, bringing total expenditure down to NT$2.9248 trillion. The FY2026 budget was proposed at NT$3.0349 trillion but did not pass its third reading until August 14, 2026, with a cut of NT$48 billion—the latest passage in history. Within the same year, defense spending can be reported as either NT$949.5 billion or NT$697.3 billion depending on the metric used. Before reading budget figures, first confirm which question they are answering.

A NT$3 Trillion Allocation Table

The presentation for the FY2026 central government general budget proposal, submitted by the Directorate-General of Budget, Accounting and Statistics (DGBAS) at the Executive Yuan meeting on August 21, 2025, lists: total expenditure of NT$3.035 trillion (NT$3,035 billion), an increase of NT$110 billion over FY2025, or approximately 3.8%. If the supplementary budget for FY2025 is included, the increase is only NT$22.2 billion, or about 0.7%.¹

After nearly a year of review, the Legislative Yuan passed the third reading on the evening of August 14, 2026. The originally proposed expenditure was NT$3.03497437 trillion; after a cut of NT$48 billion, the provisional expenditure was set at NT$2.98697437 trillion.²

Following the third reading, Legislative Yuan President Han Kuo-yu stated that this budget process had been delayed for 266 days.² A report by CNA (Central News Agency) noted that this was the latest general budget to be passed in the history of the Republic of China.²

Three Numbers: Proposed, Statutory, and Final Accounts

Taking FY2025 as an example, a single budget item has at least three different numbers.

The first is the Proposed Figure from the Executive Yuan: expenditure of NT$3.1325 trillion and revenue of NT$3.1534 trillion, both hitting record highs.³

The second is the Statutory Figure after the Legislative Yuan's third reading: a reduction of NT$207.57425 billion, bringing expenditure down to NT$2.9248 trillion. The amount cut set a historical record, representing a reduction of approximately 6.6%.³

The third is the Final Accounts Figure. The FY2025 central government general final accounts report from the DGBAS lists: revenue of NT$3.1776 trillion and expenditure of NT$2.9340 trillion, meaning actual expenditure was NT$72.9 billion less than the budget figure.⁴

There is a point of potential confusion here. In the comparison table of the final accounts report, the "Budget Figure" column shows NT$3.0069 trillion, which differs from the NT$2.9248 trillion passed by the Legislative Yuan. Both numbers are official, but they answer different questions: one is the statutory budget passed by the Legislature, and the other is the baseline used for the final accounts comparison. This article does not attempt to reconcile them; it only reminds you to confirm which one is being cited before using a figure.

Who Gets What

The expenditure by function in the FY2025 final accounts shows where the money actually went.⁴

Social welfare is the largest segment, followed by education, science, and culture, with defense in third place. This table uses final accounts figures, not budget figures, so it answers "where the money was eventually spent" rather than "how much was originally allocated."

The NT$462.7 billion for defense in this table is the FY2025 final accounts classification by function. The two defense figures discussed in the next section pertain to the FY2026 budget; because the years and calculation methods differ, these three numbers cannot be compared directly.

Two Defense Figures

In the Executive Yuan's presentation, the FY2026 defense expenditure is given a total of NT$949.5 billion, accounting for 3.32% of GDP.¹

This figure is not a single line item. It consists of four parts: the general budget of NT$884.1 billion (which includes a general budget of NT$697.3 billion and special budgets of NT$186.8 billion), plus non-operating special funds of NT$65.4 billion. The presentation also notes that this metric "references NATO standards," incorporating retirement benefits for veterans from the Veterans Affairs Council and expenditures from the Coast Guard Administration.¹

Therefore, for the same year, defense can be reported as NT$949.5 billion (including special budgets, veterans' affairs, and the Coast Guard) or as NT$697.3 billion (general budget only). Both are correct; the difference lies in which items you include in "defense."

This is not a word game. International comparisons often use the first metric because that is how NATO members calculate it; budget reviews often use the second because the Legislative Yuan reviews specific line items within the general budget. When both sides use different metrics, it easily turns into a debate where no common ground is found.

Where the Legislature Cuts

The reduction rate for FY2025 was 6.6%, much higher than in previous years. CNA reported several specific cuts: a blanket 10% cut to utility expenses, a blanket 60% cut to special expenses (entirely removing special expenses for agencies including the Executive Yuan, Mainland Affairs Council, Council of Indigenous Peoples, and Ministry of the Interior), a 3% cut to military equipment and facilities, and a 60% cut to media policy and business promotion expenses. Additionally, the entire NT$100.0002 billion injection from the Ministry of Economic Affairs to Taipower was cut.³

The reduction rate for FY2026 returned to 1.58% (NT$48 billion), but the cuts remained concentrated. The passed third reading included a blanket 60% cut to heads-of-agency special expenses, a 2.5% cut to military equipment and facilities, and a 50% cut to media policy and business promotion expenses.²

The Ministry of Culture's media promotion expenses have been a consistent battlefield over the past two years. For FY2026, NT$47.38 million was proposed. During the review by the Education and Culture Committee on July 2, 2026, KMT legislator Weng Hsiao-ling proposed a total deletion, questioning whether media promotion funds had previously flowed to specific media outlets. TPP legislator Tsai Chun-chou requested a reduction, while DPP legislators opposed the deletion. Minister of Culture Li Yuan stated during the meeting that media promotion funds were cut to zero in FY2025 and emphasized that such funds are "definitely not subsidies for specific media." The committee stage concluded with Convener Lo Ting-wei ruling to freeze NT$8 million, requiring the Ministry of Culture to submit a written report for committee approval before any funds could be used.⁵

When the general budget passed its third reading on August 14, the Ministry of Culture's media promotion expenses were deleted in full for the second consecutive year; the NT$8 million freeze from the committee stage did not become the final result.⁶

Was the Money Spent?

Another function of the final accounts report is to answer "was the budget fully executed?"⁴

The FY2025 expenditure final accounts totaled NT$2.934 trillion. Compared to the budget figure of NT$3.0069 trillion listed in the final accounts report, this is NT$72.9 billion less, representing an execution rate of approximately 97.6%. Revenue final accounts totaled NT$3.1776 trillion, which is NT$12.6 billion more than the budget figure. Offsetting these two, the revenue-expenditure surplus was NT$243.6 billion, which is NT$85.5 billion higher than the budgeted surplus of NT$158.1 billion.

This set of numbers illustrates one thing: a budget being cut does not necessarily mean less money was spent; and a large budget allocation does not guarantee all the money will be spent. Cuts occur during the review stage, while execution rates are determined during the final accounts stage—they are two different questions.

Four Metrics, Four Questions

Bringing the above sections together, one must distinguish between four metrics when reading the central government general budget.

The Proposed Figure asks "how much does the Executive Yuan want"; the Statutory Figure asks "how much does the Legislative Yuan give"; the Final Accounts Figure asks "how much was actually spent"; and the Special Budget asks "which funds are not in the general budget." All four figures can be "trillions," but none of them can alone answer whether "the government is spending too much or too little."

This is also why annual budget news often results in fruitless arguments: one side presents NT$949.5 billion in defense, while the other presents NT$697.3 billion. Neither side is wrong; they are simply not having a conversation using the same metric.

Further Reading:

• Ten Years of General Budgets — Interactive charts showing historical agency, function, and cut/freeze records; a sister data page to this article.
• Taiwan's Defense and Military Modernization — The military building and procurement behind the defense budget.
• Taiwan's Oil Price Mechanism and CPC — Another price mechanism determined by statutory formulas and review committees.
• Taiwan Creative Content Agency — A case study of cultural budgets and corporatization.

References