The economic and political condition of a country usually determines its fiscal policy. When Chiang Ching-Kuo was in charge of Taiwan¡¦s political and economic power between 1972-1988, his administration pushed forward many new public policies and economic growth plan in order for Taiwan to continue development. There were several different exhaustive expenditures and transfer payments. The financial resources to make this happen include tax revenue, commercial revenue, administrative revenue and debt-created revenue. The fiscal policy is necessary and important complimentary part of a government¡¦s public administrative policy and economic development plan. However, under the democratic system of Taiwan, fiscal policy is often over used or abused. On the one hand, the government¡¦s expenditure in national defense, social security, education, economic development, etc., continue to expand; on the other hand, tax revenue continue to be cut down to please the constituents. On the surface, this policy during reign of Chiang Ching-Kuo did not appear to have any financial burden; in truth the potential fiscal deficit has already began to grow. Unfortunately, this negative impact by the policy did not become apparent until the recent years. Economic growth has always been the goal of all governments around the world. When economists report on the economic development plan of his/her country, most will assent that the fiscal policy is the key to the economic growth. My dissertation is focused on the period from 1972-1988 when Chiang Ching-Kuo is in control of Taiwan. I will focus on how the financial expenditures and revenues, as well as tax burden, income distribution, public debit and credit, investment encouragement and import-export policies, together with the economic facts of the time, to correlate in further detail the meaning and affect of the past policies. Furthermore, I hope to gain new economic insights through restudying of past, and allow this dissertation be of help to the present economic administration.