Taiwan's budgetary responses to COVID-19: the use of special budgets
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 29 October 2020
Issue publication date: 26 January 2021
Abstract
Purpose
The authors examine the Taiwanese government's budgetary responses to COVID-19, with a focus on the special budgets created for containing the virus, undertaking bailouts and providing economic stimulus. The authors assess the short-term and long-term fiscal implications of the budgetary measures and discuss how Taiwan's experiences could provide lessons for other countries for future emergencies.
Design/methodology/approach
The authors collect data from Taiwan's official documents and news reports and compare the special budgets proposed by the Taiwanese government during the Great Recession and the COVID-19 pandemic. The authors discuss lessons learned from the 2008–09 special budget and possible concerns of the 2020 special budgets. In the conclusions, the authors discuss potential long-term implications for Taiwan's budgetary system as well as possible lessons for other countries based on Taiwan's experiences
Findings
The authors found that the 2008–09 special budgets focused only on economic stimulus, whereas the 2020 special budgets covered COVID-19 treatments, bailouts and economic stimulus. In 2020, the Taiwanese government devised targeted bailout plans for industries and individuals most affected by the pandemic and created the Triple Stimulus Vouchers to boost the economy. Since the special budgets were largely funded through borrowing, the authors pointed out concerns for fiscal sustainability and intergenerational equity.
Originality/value
COVID-19 has changed how the world functions massively. This work adds to the literature on COVID-19 by providing Taiwan's budgetary responses to the pandemic. This work also identifies ways for Taiwan to improve the existing budgetary system and discusses lessons for other countries.
Keywords
Acknowledgements
The authors would like to thank Dr. Carol Ebdon for her constructive comments and suggestions. All errors are the authors’ own.
Citation
Liao, W.-J., Kuo, N.-L. and Chuang, S.-H. (2021), "Taiwan's budgetary responses to COVID-19: the use of special budgets", Journal of Public Budgeting, Accounting & Financial Management, Vol. 33 No. 1, pp. 24-32. https://doi.org/10.1108/JPBAFM-07-2020-0128
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited