Taiwan's central government will sharply increase the tax revenues it distributes to local governments next year, good news for the finances of cities and counties, though the central government has also cautioned localities against spending carelessly.

• Centrally allocated tax revenues will total around NT$972.5 billion next year, up 10 percent from this year, with all 22 cities and counties receiving more.
• Taipei City receives the most at NT$126.4 billion, followed by New Taipei City; among the six special municipalities, Tainan City receives the least and sees the smallest increase.
• Including general and project-based subsidies, the central government will transfer a combined total of about NT$1.3579 trillion to local governments next year, an all-time high.
• On a per capita basis, the outlying islands and small eastern counties fare best: Lienchiang County receives about NT$190,000 per person, followed by Taitung and Penghu, while New Taipei City receives the least per person.
• The Ministry of Finance wants local governments to use the additional revenue to pay down debt first, rather than expand spending.

Outlook: The Executive Yuan's draft amendment to the Act Governing the Allocation of Government Revenues and Expenditures has been sent to the Legislative Yuan, and the Ministry of Finance hopes the amendment will be given priority for passage in the next legislative session. The allocation formula could still change in the future.