The debt problem becomes severe recently in Taiwan. This paper analyzes the central government's financial deficit between 1994 and 2012 using the vector autoregression model with exogenous variables. We also collect the data of macroeconomic variables and national election during the same period of time to examine the two hypotheses proposed in this paper. The first hypothesis is that the government mitigates the pain caused by business cycles by adjusting fiscal deficit, and the second one is that the government tries to enhance the winning probability in elections by increasing government expenditure with fiscal deficit. This paper finds evidences supporting the first hypothesis, but not the second hypothesis.