Chapter Two Planning and Compilation of Budget
The central budget accounting and statistics agency, competent central economic planning agency, auditing agency, competent central finance agency and all other relevant agencies shall, prior to planning and compilation of budget estimates, forward the information within the following scopes that could serve as a reference for determination of administrative policies to be implemented in the next year to the Executive Yuan:
1. The central budget accounting and statistics agency shall provide the accounting statistics and analysis concerning financial and economic conditions of the previous fiscal year, the trend for the supply and demand of national resources for the next fiscal year as well as suggestions for the enhancement of official and financial efficiency.
2. The competent central economic planning agency shall provide the review and comments on major economic projects of the previous fiscal year as well as the outlook for the future.
3. The auditing agency shall provide information related to the auditing of the budget implementation of the previous year, and suggestions for enhancement of financial efficiency and reduction of non-economic expenditures.
4. The competent central finance agency shall provide information regarding the revenues of the previous year, and suggestions for enhancement of financial efficiency and reduction of non-economic expenditures, financial measures for the next year, as well as the probable maximum revenues.
5. Other relevant agencies shall provide information related to the determination of administrative policies.
The Executive Yuan shall try to compile Statistics on National Wealth, Green National Income Account and report on tax expenditures and transferring expenditures.
The preceding report shall disclose on the government website.
The Executive Yuan shall set the administrative policies for the next fiscal year nine (9) months prior to the beginning of the next fiscal year.
The central budget accounting and statistics agency shall, in accordance with the administrative policies, prepare budget compilation directions for the next fiscal year and submit the same to the Executive Yuan for approval and distribution to each and every government agency to act accordingly.
All competent agencies shall, in accordance with theadministrative policies and the budgetary compilation principles and budget compilation directions approved by the Executive Yuan, prepare a policy implementation plan and a business plan, as well as budget estimates for annual revenues and annual expenditures covering the scope of their jurisdictions and forward the same to the Executive Yuan.
Where newly prepared or altered parts of the policy implementation plan as referred to in the preceding Paragraph covers a period over one fiscal year, the complete plan must be attached.
The policy implementation plan as referred to in the preceding Article and budget estimates may, depending on actual needs, be compiled for long-term application; the regulations for which shall be stipulated by the Executive Yuan.
With respect to major public construction projects and major policy implementation plans, before the budget estimates and budget proposals are compiled, a cost efficiency analysis report on the alternative measures and substitute measures must be first drawn up and attached with a description of the financing and capital employment. And the report should be forwarded to the Legislative Yuan for its files and reference.
The central budget accounting and statistics agency shall audit budget estimates of all kinds in accordance with the law and, depending on actual needs, listen to the description of the budget estimate contents briefed by the competent agency that compiles the budget estimates.
When the Executive Yuan approves the budget estimates of each and every competent agency on the basis of the audit report made by the central budget accounting and statistics agency, for the annual expenditures, it may only approve a quota and notify the relevant competent agency respectively to instruct its subordinate unit to prepare the next year's budget according to its plan and the budget compilation directions.
The unit budget of each and every government agency shall be compiled by the accounts of source for annual revenues and, by accounts of function, program, operation or objective for the annual expenditures. Each program shall, unless unable to measure the workload, choose a respective working measurement unit to calculate the official cost.
The allocations subsidized by each and every government agency unit to the local government shall be collectively described by a table in the general budget proposal.
The compilation of the budget of Allocations for Continuous Expenses shall state the contents, total expenses, implementation period, and quota for each fiscal year of the complete plan. The budget for each year shall be prepared according to the quota of each fiscal year.
The source accounts and their amounts of the annual revenues of the unit budget and the program and operation accounts and their amounts of the annual expenditures shall be compiled into the general budget; provided, however, that where national secrets are involved, they may be compiled separately.
The unit budget and subordinate unit budget of each and every government agency shall be forwarded to the respective competent agency before the given time limit.
Where the profit or loss of each and every department of the state-owned enterprises or other business it invested in is independently computed, the sub-budget of the department or other business it invested in shall be attached.
With respect to businesses invested in or managed by each and every department or foundation donated to by the government, the competent agency shall, after the efficiency assessment of the investment or donation in the previous fiscal year is made and brought into the final accounting of budget, draw up the operation and capital employment plan, respectively, for submission to the Legislative Yuan every year.
Competent authority shall submit the annual budgetary statement to the Legislative Yuan for deliberation, in the case of a foundation with the accumulated government-donated fund exceeding over 50%, and a foundation being formed by the Japan's remaining assets due to Japan retreat and Taiwan takeover.
Each and every competent agency shall audit the budget of annual revenues, annual expenditures and business budget within the scope of its jurisdiction with comments. The competent agency shall forward its comments together with the collected unit budgets of each and every subordinate unit and the main agency, as well as subordinate unit budgets, to the central budget accounting and statistics agency within the given time limit. The competent agency shall also forward the compiled budget of annual revenues to the competent central finance agencies at the same time.
Each and every competent agency shall, by the sequence of priority, arrange the annual expenditures budget estimates of its agency unit for review and reference by the Legislative Yuan.
The preceding Paragraph shall apply, mutatis mutandis, to the general budget proposal for the central government compiled by the central budget accounting and statistics agency.
The competent central finance agency shall, with respect to the budget for annual revenues submitted by each and every competent agency, add its comments and, together with the budget for annual revenues under its jurisdiction, forward the combined budget to the central budget accounting and statistics agency.
The central budget accounting and statistics agency shall prepare the general budget proposal of the central government by combining the various annual expenditures budget and the combined annual revenues budget compiled by the competent central finance agency, and compile the subordinate unit budgets, including the business and non-business ones, in a consolidated table with a description. The central budget accounting and statistics agency shall submit the above-mentioned consolidated table and its comments together with each and every subordinate unit budget along with the general budget proposal to the Executive Yuan for forwarding to the Executive Council of the Executive Yuan.
In case the annual revenues and annual expenditures of the general budget proposal as referred to in the preceding Paragraph are not balanced, the central budget accounting and statistics agency shall seek and propose solutions jointly with the central competent finance agency.
The general budget proposal of the central government, subordinate unit budget and its consolidated table shall, after a decision is made by the Executive Council of the Executive Yuan, be turned over to the central budget accounting and statistics agency for compilation and, along with the policy implementation plan, submitted by the Executive Yuan to the Legislative Yuan for its review four (4) months before the beginning of the fiscal year.
Unless otherwise stipulated by this Act, compilation ofbudget estimates and the budget of each and every government agency, approval and the deadline of the approval as well as the number of copies of the prepared budget to be submitted shall be determined by the Executive Yuan.