Fiscal Policy For Taiwan
Taiwan is creating a fiscal policy that will increase their defense budget from 2011 to 2015 by 7.8% each year. As of right now their current defense budget is an estimated $10.14 billion dollars per year. By the year 2015 Taiwan will be spending about $13.7 billion dollars for that year with a 7.8% increase in their budget each year starting in 2011. This fiscal policy is an example of a expansionary policy aimed to increase consumer spending by increasing government spending. By Taiwan increasing their spending on their defenses (military), they will be able to stimulate their economy by promoting consumer spending and economic growth in their economy.
http://www.monstersandcritics.com/news/asiapacific/news/article_1660327.php/Taiwan-military-proposes-7-8-per-cent-budget-increase
http://www.monstersandcritics.com/news/asiapacific/news/article_1660327.php/Taiwan-military-proposes-7-8-per-cent-budget-increase