Hsinchu City Achieves Zero Debt! Mayor Kao Honors Key Personnel

After 30 years, Hsinchu City has finally achieved zero debt! On the 28th, before the city’s administrative meeting, Mayor Kao Hon-an presented certificates of appreciation to Secretary-General Chang Chih-hsiang, and personnel from the Finance Department, Budget Office, and Taxation Bureau, recognizing the city government team’s collective effort in fully repaying all debts regulated under the Public Debt Act by July 15, 2025. This milestone marks Hsinchu City’s official return to a zero-debt status after three decades, laying a more stable fiscal foundation for urban development.

Hsinchu City has cleared over NT$10 billion in debt within three years, saving approximately NT$180 million annually in interest payments. Mayor Kao stated that upon taking office, she inherited a public debt burden of NT$10.017 billion under the Public Debt Act. Facing fiscal pressure, the city government has consistently prioritized fiscal discipline as the core of its governance, implementing prudent budgeting, proactive revenue enhancement and cost reduction, strict debt control, and flexible fund allocation to gradually strengthen its financial structure and successfully meet its debt reduction target. Kao emphasized that repaying the NT$10 billion debt saves about NT$180 million in annual interest, significantly reducing fiscal burden and enabling more effective use of limited resources in education, social welfare, and municipal projects, thereby continuously improving citizens’ quality of life.

Mayor Kao presented an award to Secretary-General Chang Chih-hsiang, thanking him for his coordination and leadership in achieving the zero-debt goal. (Photo: Hsinchu City Government)

Kao highlighted that the successful repayment of the NT$10 billion debt within just over three years was the result of the entire city government team’s joint efforts. She particularly thanked Secretary-General Chang for his role in overseeing budget planning, debt management, cost-saving initiatives, and local tax collection, which collectively built a robust fiscal framework. The Finance Department actively implemented debt management, earning excellent ratings in the Ministry of Finance’s local government debt management assessments for consecutive years. Through flexible fund allocation, it effectively reduced interest expenses while advancing various revenue-generating measures to enhance overall financial management efficiency.

The Budget Office strictly adhered to budget formulation and execution standards, assisting various departments in carefully planning and utilizing budgets to improve performance. This contributed to improved central government evaluation results, with Hsinchu ranking first nationwide in the fiscal category of general subsidy assessments in 2024, securing over NT$200 million in additional subsidies. The Taxation Bureau continuously improved local tax collection, winning first place in the Ministry of Finance’s local tax collection assessment (Group B) for four consecutive years. It successfully implemented Housing Tax 2.0, pushed stamp tax revenue past NT$1 billion, and enacted the 'Hsinchu City Construction Surplus Soil and Rock Special Tax Self-Government Ordinance,' injecting stable revenue into the city’s treasury.

Mayor Kao emphasized that achieving zero debt has strengthened Hsinchu City’s fiscal resilience and created greater fiscal space for future major infrastructure projects and municipal development, enabling more effective investment in education, social welfare, transportation, and public construction.