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Hsinchu County and Hsinchu City were originally part of the same administrative region, known as Hsinchu County. On January 1, 1982, Hsinchu County and Hsinchu City were separated into two distinct administrative entities, and it has been over 40 years since the split. Due to the close-knit living circle of Hsinchu County and City, there are many livelihood-related issues, such as transportation, garbage disposal, drinking water quality, and land use, that have encountered difficulties arising from this separation. Additionally, while Hsinchu City and Hsinchu County rank second and seventh, respectively, in terms of actual income tax revenue collection in the country, their per capita allocation of central government funds ranks only seventeenth and twenty-second nationwide. Therefore, whether the merger of Hsinchu County and Hsinchu City could enhance the fiscal capacity of the local government and the potential benefits of such a merger are the motivations for this study.
This paper primarily discusses three aspects: the current financial status, the relationship within the living circle, and the administrative efficiency of local governance. The research methods include literature analysis, data analysis, and in-depth interviews.
By studying the financial differences before and after the mergers of Kaohsiung County and City, Taichung County and City, and Tainan County and City, the research analyzes six issues and draws conclusions. First, there is no correlation between the merger and the percentage of actual tax revenue and central government subsidy income in the final accounts. Second, there is no direct relationship between the merger and the growth of total income in the final accounts. Third, the proportion of non-self-financing sources in the growth of total income in the final accounts is unrelated to the merger. Fourth, upgrading a county and city to a special municipality indeed increases the allocation of centrally distributed taxes. Fifth, regardless of whether a merger has occurred, subsidies and assistance income reflect the fiscal principle of "spending within means." Sixth, the central government supplements local governments to address the uneven distribution of tax revenue among different local governments.
Through qualitative research, the study explores four topics: first, an analysis of the current cross-domain governance situation in Hsinchu County and City; second, the positive benefits of merging Hsinchu County and City; third, the negative impacts of such a merger; and finally, the obstacles to the merger of Hsinchu County and City.
Combining data analysis with qualitative research, the study finds that while merging and upgrading can increase the allocation of centrally distributed taxes, the benefits of the merger outweigh those of upgrading. By unifying administrative powers and integrating resources, plans that span both the county and city can more effectively meet the needs of the Greater Hsinchu living circle, resulting in more comprehensive governance and significant construction projects in the Hsinchu region, aligning the area's development with its revenue-generating capacity.
Keywords: County-City Merger, Cross-Regional Governance, Non-Self-Raised Revenue, Subsidies and Assistance Income.
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