Article 3
The central government, and special municipality, and county (city) governments (hereinafter referred to as “ governments at each level ” )shall fully provide for, guarantee, and work to promote the steady growth of national education expenditure within the financial capacity of the country.
The aggregated education expenditure budget of governments at each level shall be no less than 23% of the average of the net budget revenues of the previous three years.
The increased education expenditure budgets arising as a result of implementation of the provisions of the preceding paragraph which was amended on 1 January, 2012 shall primarily be used for promoting and implementing the 12-year Basic Education program.
The net budget revenue referred to in Paragraph 2 refers to the revenue of governments at each level that does not include any government borrowings or appropriations of a surplus from any previous fiscal year, and from which all double-listed revenue items have been deducted when doing the final accounts of the budget and any special budgets.
The financial resources of the government of a special municipality or a county (city) are defined as its annual gross revenue less any subsidies from a government at a higher level and within each such government ’ s financial capacity, priority shall be given to providing education expenditure, to meet the basic needs of education. Its own education expenditures shall increase year by year, except when it has reduced financial resources.

Article 3-1
Any increase in the amount of income tax levied on the salaries of the members of teaching and other staff of public and private preschools, elementary, and junior high schools by the central government in accordance with the law is not to be included in the total amount when calculating the 23% stipulated in Paragraph 2 of the previous article; any additional government income derived from such taxation is to be placed in a separate special fund and used exclusively for enhancing the quality of early childhood education and care services and elementary and secondary education.

Article 9
The Executive Yuan shall establish an Education Funding Committee which will have the following responsibilities:
A. Formulating education funding criteria
B. Calculating the basic education expenditure needs of governments at each level
C. Calculating the respective share of the overall education expenditure to be allocated to governments at each level
The committee referred to in the previous paragraph shall have 13 to 17 members who are scholars; experts; or representatives of special municipality, and county (city) governments; the Directorate General of Budget, Accounting and Statistics, Executive Yuan; the Ministry of Finance; the central competent education administration authority, and associated agencies, and the scholars and experts shall account for no less than one-third of the members. The committee ’ s composition and meeting related matters shall be prescribed by the Executive Yuan.

Article 18
This Act shall take effect within one year from its promulgation.
This Act was amended on 29 March, 2011; the date that the amended articles take effect is to be determined by the Executive Yuan.
The amendments to articles in this Act promulgated on 9 December, 2011 take effect on 1 January, 2012.
The amendments to articles in this Act promulgated on 18 December 2015 take effect from the day of promulgation.