Chapter Four Implementation of Budget
Each and every government agency shall, in accordance with its legal budget and the rules set by the central budget accounting and statistics agency, compile the distribution budget for annual revenues and annual expenditures.
The distribution budget as referred to in the preceding Paragraph shall be distributed by the month or by term in accordance with the implementation plan, and shall be completed prior to implementation of the budget.
The distribution budget made by each and every government agency shall be forwarded to the central budget accounting and statistics agency for approval.
The central budget accounting and statistics agency shall notify the competent central finance agency and auditing agency with respect to the distribution budget approved under the preceding Article and notify the competent agency and the agency that originally compiled the distribution budget.
During the implementation period of the distribution budget by each and every government agency, if a revision of the distribution budget is necessary because of alteration of the original implementation plan or adjustment of the implementation progress and the distributed quota, the procedural rules under the preceding three Articles shall apply mutatis mutandis.
In implementing the distribution budget for annual revenues, each and every government agency shall examine actual revenues by the month or by term; any excess amount shall be turned into the national treasury and shall not be unilaterally offset or used for other purposes.
For national property or stocks permitted for sale by law, they shall be sold according to the market price when the ongoing market price is higher than the budget.
In implementing the distribution budget for annual expenditures, each and every government agency shall examine actual expenditures by the month or by the completed progress of the phase-in plan and actual disbursement of allocations item by item. The central budget accounting and statistics agency shall forward the review report on major matters to the Legislative Yuan for file and reference. Allocations for the following month or the following term shall not be disbursed in advance. Unless processed in accordance with Article 69 hereof, the surplus, if any, may be carried over to the following month or the following term for continued application; provided, that it shall be in the same fiscal year.
Within the general budget, there shall be no interaccount use of allocations between separate agency accounts, between separate function accounts and between separate program or operation accounts; provided, however, that this provision shall not apply to the statutory unified accounts appropriated by the Executive Yuan and the first reserve fund.
Based on administrative neutrality and maintaining freedom of the press and the rights of the people, the policy as well as service promotion conducted by all government agencies and state-run enterprises, foundations with the accumulated government-donated fund exceeding over 50%, and businesses with government-reinvested capital over 50% via print media, broadcast media, online media (social media included) and TV media should be clearly marked as advertising and reveal the sponsor, and shall not be conducted in the way of products placement.
The implementation of the budget as referred to in the preceding Paragraph should be tightened under the control of each competent agency. The topic of propaganda, media type,implementation period, amount and implementation agency, should be published on the websites of each competent agency and the DGBAS every month, and submitted to the Legislative Yuan for reference every quarter.
With respect to the distribution budget for annual expenditures of each and every government agency, if there are no adequate and sufficient allocations in any objective accounts under the program or operation accounts while there is surplus in other accounts, interaccount use may be conducted, the amount of which shall not exceed of 20% of original budget, whether the amount of inflows or outflows; provided, however, that the surplus shall not be used for expenses on personnel. And there shall be no interaccount use of any budget items deleted or cut down by the Legislative Yuan.
In case any government agency finds the allocations are not adequate and sufficient in implementing the distribution budget for annual expenditures, it shall seek the approval of a higher competent authority and forwarding the approval to the central budget accounting and statistics agency for file and reference before the first reserve fund is disbursed. The central budget accounting and statistics agency shall notify the auditing agency and competent central finance agency of the above situation.
Each and every government agency shall, in accordance with the rules set by the central budget accounting and statistics agency, prepare a report on the implementation status of the budget and the programs to be filed with its competent agency for forwarding to the central budget accounting and statistics agency, auditing agency and competent central finance agency.
The central budget accounting and statistics agency may, depending on actual needs, assign its auditors to check the budget implementation status of any government agency from time to time.
In case the budget for any major construction investment plan of any government agency has not been disbursed within four (4) years, the budget shall be subject to renewed review.
The central budget accounting and statistics agency, auditing agency and competent central finance agency may, from time to time, make an on-site audit of the budget and its employment status as to disbursement, and may further demand the following personnel for furnishing a report:
1. Budget implementation agency.
2. Contractor of a public construction project.
3. Providers of goods or services.
4. Recipients of national investment, cooperation, subsidies or commissions for any project.
5. Manager of national allocations or property.
6. Recipient of national distribution budget.
7. Recipients of loans, guarantees or sureties provided by the budget allocations.
8. The principal commissioned for investigation, test or study.
9. Other final recipients of allocations or benefits.
In reviewing reports filed by each and every government agency, or the results of an on-site audit in accordance with Article 66 hereof, if the central budget accounting and statistics agency finds the concerned agency has failed to complete its scheduled work by the quarter or term, or there is a necessity to save the original budget for annual expenditures, the central budget accounting and statistics agency may negotiate with its competent agency for reporting the case to the Executive Yuan for approval to have part or the entire approved distributed quota or distributed quota in each term in the future listed as a reserve to be disbursed on a special project basis when actual needs arise or to be listed as surplus.
In case any government agency is found to have any of the following circumstances, the concerned agency may, subject to approval by the Executive Yuan, use the secondary reserve fund and adjust the amount in the original account to which it belongs and the Executive Yuan shall compile a table of disbursed amount and forward the same to the Legislative Yuan for review afterward:
1. Allocations for a plan originally approved become inadequate and insufficient as a result of approved adjustment on the allocations in response to actual needs.
2. The original plan requires additional allocations due to an increase in the volume of operations.
3. Additional plans and allocations are required in response to a sudden political event.
In the course of budget implementation, if a special event in the nation occurs that makes it necessary to reduce the budget allocations, reduction of the budget may be conducted by a presidential order subject to a resolution by the Executive Council of the Executive Yuan.
At the end of the fiscal year, the revenues that have already accrued, but have not been received by an agency, shall be carried over to the next fiscal year as accounts receivable; the use of the allocations that have not been used shall immediately cease. However, for the obligations or contractual responsibilities that have already occurred, but not yet repaid or released, it maybe carried over to the next fiscal year as accounts payable for the previous year or expenditure encumbrances subject to approval.
At the end of a fiscal year, the national treasury shall carry over the surplus to the next fiscal year.
According to Article 72 hereof, the accounts payable from the previous year or expenditure encumbrances carried over to the next year shall, within ten (10) days after the end of a fiscal year, be reported to the competent agency forwarding it to the Executive Yuan for approval and notifying the central budget accounting and statistics agency, auditing agency and competent central finance agency of the approval, respectively.
For any amount paid by error or overdraft, the amount paid in advance but to be reimbursed in accordance with law, and surplus of prepaid payment or payment by estimate, if any of the amount is turned in after the end of a fiscal year, the amount shall be deemed as surplus and shall be carried over to the next fiscal year as revenues.
For the quota of Allocations for Continuous Expenses distributed by year, the unused portion after the end of each year may be carried over to next fiscal year for disbursement.
If there is any difference in the budget amount that shall be turned in to the national treasury by a subordinate unit as listed in the general budget after review of the legislative process, the Executive Yuan shall, in accordance with the final Legislative Yuan-approved amount, adjust the budget and implement it accordingly.
The budget amount that shall be turned in to the national treasury by each and every subordinate unit shall, in accordance with the budget, be listed as distribution budget for annual revenues and reported for being turned in by each term by the competent agency. At the final accounting of the budget, an adjustment shall be made in accordance with the result of final accounting of the budget as well as the distribution results made pursuant to statutory procedure. Where the amount that shall be turned in to the national treasury that exceeds the budget, the entire amount shall be turned in to the national treasury.