Act Governing the Allocation of Government Revenues and Expenditures Article 35-1

Except as otherwise provided by other laws, the standards for planning, compilation, and common expenses with respect to the revenues and expenditures in annual general budgets, additional budgets, and special budgets at all governmental levels shall be in accordance with the Principles for Planning and Compilation of Central and Local Government Budgets adopted by the Executive Yuan.When a local government fails to comply with the Principles for Planning and Compilation of Central and Local Government Budgets under the preceding paragraph, or when it is allowed by law to collect revenues from a particular source but fails to do so, its superior government shall consider reducing the budgeting or allocation of subsidies to that local government as merited by the actual circumstances; when a local government has a record of successfully developing sources of revenue, its superior government may consider increasing subsidies to it.