Public Debt Act Article 12

For the purpose of stepping up debt management, the central government and special municipalities shall allocate at least five to six percent of tax revenues of the current fiscal year for repayment of principal on debt, and the counties (and county-level cities) and townships (and township-level cities) shall allocate at least one percent of the forecasted amount of outstanding public debt for the preceding fiscal year calculated pursuant to Paragraph 4, Article 5 for repayment of principal on debt. If a portion of the principal repayment is to be covered by borrowing, that portion shall be counted toward the loan caps for a fiscal year as prescribed in Paragraphs 7 through 9, Article 5.On the basis of close examination of the annual revenue collection, the central government, special municipalities, counties (and county-level cities), and townships (and township-level cities) may increase the amount of principal repayment in addition to the original amount allocated for the repayment of the principal in their respective budgets for the current fiscal year.