Taoyuan City Faces Revenue Shortfall, Council Urges Fiscal Improvement

Taoyuan City's recent fiscal report for 2025 has raised concerns among local representatives regarding the execution rates of both revenue and expenditure. The city's revenue fell short by a considerable NT$7 billion, achieving only a 95.51% execution rate. This shortfall is attributed to several factors, including weaker-than-anticipated performance in the auction of land designated for development and lower-than-expected land value increment tax revenues. Furthermore, while central government block grants increased, corresponding subsidies decreased, highlighting the city's reliance on external funding and the need to strengthen its own revenue streams. The expenditure execution rate also saw a dip to 93.27%, the lowest since Taoyuan's elevation to a special municipality. While the Finance Bureau attributes this partly to lower birth rates impacting social welfare spending, council members are calling for more proactive measures. They emphasize the importance of diversifying and increasing the city's self-generated revenue, exploring options like asset revitalization, user-pays systems, and public-private partnerships. The city's fiscal health is a critical concern, especially given the volatility of central government funding. Local officials are under pressure to demonstrate fiscal prudence and develop strategies that enhance Taoyuan's financial resilience in the face of economic uncertainties and policy shifts from the central government.

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The city's revenue execution rate declined, mainly due to poor performance in the auction of land for development and land value increment tax not meeting expectations. Although central government block grants increased, related subsidies also decreased, highlighting the importance of increasing self-generated revenue.