To achieve the objective of creating an efficient government, the Executive Yuan has promulgated an official letter on the ”Performance Evaluation on Policy Implementation of Agencies Under the Executive Yuan” in 2001. Also, the performance evaluation system was implemented in 2002 to facilitate the execution of performance evaluation and management tasks of the agencies. The system combined medium, long term and annual planning approach to integrate strategic planning, execution and performance evaluation tasks of the agencies effectively and enhance their overall ability and results of policy implementation. This report will discuss the execution conditions of this system in the past one year and offer suggestions for review and improvement. We hope that the public would gain a deeper understanding and knowledge about the history, execution conditions and future prospect of the government agency performance evaluation system in Taiwan.