The finance ministry has pledged to continue its efforts to push for fiscal restructuring to improve the state of Taiwan’s finances and eventually strengthen the country’s global competitiveness.
The ministry made the comments on Friday after Fitch Ratings affirmed Taiwan’s long-term Foreign and Local Currency Issuer Default Ratings at A+ and AA-, respectively. In addition, Fitch has affirmed the ratings of Taiwan’s Country Ceiling at “AA”. These ratings indicate that Taiwan’s financial and economic conditions are sound.
The ministry said it will gradually cut the budget deficit and seek more alternative sources to raise the government’s revenue.
In May, the legislature approved a bill submitted by the ministry to raise taxes for the wealthy. The bill aims to improve the country’s fiscal health.
Fitch said after the new multi-year government fiscal restructuring program is implemented, the Taiwanese government’s budget deficit is expected to fall to 1.5% of the country’s GDP in 2016 from a peak of 2.3% in 2014.