Taiwan ministry warns against raising education budget, citing fiscal risks

A proposal by Kuomintang (KMT) lawmakers in Taiwan aims to raise the statutory minimum for education expenditure from 23% to 24% of the average net revenue from the previous three fiscal years. The Education and Culture Committee of the Legislative Yuan is set to review 15 amendment proposals to the "Educational Expenditure Allocation and Management Act."

However, the Ministry of Education has expressed reservations, stating in a written report that a 1% increase would add approximately NT$40 billion to annual government spending. The ministry argues that mandating a fixed expenditure amount or percentage could violate the "Fiscal Discipline Act." It recommended maintaining the current system, which calculates national education expenses based on the average net revenue of the past three years, with adjustments made considering the fiscal capacities of central and local governments.

The ministry further explained that recent amendments to the fiscal revenue and expenditure allocation act have reduced the central government's available funds while increasing local governments' own revenue sources. If the proposed increase were calculated based on pre-amendment figures, the central government's education budget would need an additional NT$35.8 billion for fiscal year 2027. This, coupled with significant expenditures on defense, foreign affairs, and social welfare, would create substantial budgetary pressure. The ministry also noted that the proposed amendment to establish a Central Education Development Fund lacks a clear source of new funding, raising further concerns about fiscal discipline.