Taiwan to give public NT$10,000 cash to share economic growth benefits
The cash-payment policy aims to share gains from AI, semiconductors and manufacturing supply chains while easing living costs and supporting local spending.
- The Taiwanese government will provide a NT$10,000 cash payment to all members of the public.
- This measure is intended to share the benefits of Taiwan's strong economic growth, which has been driven by the AI, semiconductor, and manufacturing sectors.
- The policy aims to ease cost-of-living pressures and stimulate local consumption, particularly for those in industries not directly benefiting from the tech boom.
- Eligibility for the payment extends to foreign nationals with permanent residence and foreign spouses, and the program is funded without increasing public debt.
Taiwanese President Lai Ching-te has announced that work to draw up the 2027 central government budget has been completed successfully.
Under the plan, NT$235.7 billion will be allocated to a policy providing ‘NT$10,000’ cash payments to all members of the public next year.
The measure is primarily intended to distribute the benefits of economic growth driven by artificial intelligence (AI), semiconductors and manufacturing supply chains equally among all sections of the public.
The decision follows strong economic growth in Taiwan.
The economy expanded by 14.15% in the first half of the year and is forecast to grow by 11.05% over the full year, which would set a new 39-year high.
However, the government recognises that growth concentrated in the technology sector may mean that people in other industries, such as the service sector or small and medium-sized enterprises (SMEs), do not receive the full benefits.
The cash-payment policy therefore serves as a key mechanism to ease cost-of-living pressures, support families and stimulate local consumption.
The scheme also covers ‘foreign nationals holding permanent residence permits’ and ‘foreign spouses’, reflecting the importance placed on everyone who helps drive the domestic economy.
The Taiwanese government has also emphasised ‘fiscal discipline’, with funding for the cash payments to be allocated while maintaining a balance between revenue and expenditure and with virtually no increase in public debt, to ensure that no financial burden is left to future generations.
The 2027 budget also covers five further key national development strategies: supporting the family as an institution, strengthening national security, moving towards Smart Nation 2.0, developing infrastructure and distributing budgetary support to local governments, with the aim of sustainably improving the quality of life of Taiwanese people.
This instance of cash distribution in Taiwan presents a particularly interesting case study when considered from the perspective of ‘Thailand’.
While Thailand is facing challenges in reviving its economy and debating the source of funding, Taiwan, by contrast, has been able to capitalise on the country’s ‘profits’ from future industries such as AI and return a dividend to the public, while firmly maintaining fiscal discipline without having to borrow.
The most effective and sustainable welfare or cash-payment policies may not begin with seeking loans as a temporary source of funding, but with taking action to build ‘economic foundations’ and ‘infrastructure for the future’.
