The Taiwanese government is planning to distribute cash payments of NT$10,000 (approximately $320) to each citizen next year. This initiative aims to share the benefits of rapid economic growth driven by the artificial intelligence (AI) and semiconductor industries.
According to Yonhap News on August 18, President Lai Ching-te announced this plan after receiving a report on the '2027 Central Government Budget Proposal' from the Executive Yuan the previous day. President Lai explained that the economic growth resulting from the global demand for AI, high-performance computing (HPC), and cloud services will be returned to the public through what he termed the 'AI bonus.'
The rapid growth of Taiwan's economy is attributed to the boom in the AI sector. The Taiwanese statistical authority projects the country's gross domestic product (GDP) growth rate to reach 11.05% this year, the highest level in 39 years since 1987.
President Lai emphasized that it is important not to focus solely on average economic growth figures. He stated that attention should also be given to citizens earning below-average incomes and families working hard to make ends meet, ensuring that the benefits of economic growth are more widely distributed.
The payments are expected to be made early next year. A government official indicated that if the Legislative Yuan passes the 2027 Central Government Budget Proposal before the end of this year, the NT$10,000 payments could be distributed before the Lunar New Year in February.
However, there has been criticism surrounding the cash distribution from the political arena. Chiang Wan-an, the Taipei mayor from the opposition Kuomintang party, pointed out that the ruling Democratic Progressive Party had previously criticized the Kuomintang and the second opposition party, the People’s Party, for proposing the NT$10,000 payments as unconstitutional. He argued that President Lai should clarify the reasons for the sudden policy change.
There are also speculations about political motives behind this initiative. Analysts suggest that it may be aimed at securing public support ahead of the local elections in November and laying the groundwork for President Lai's re-election bid in the 2028 presidential election.
In particular, some interpret the cash distribution as a strategy to facilitate the passage of a record-high defense budget in the Legislative Yuan. The government is proposing a defense budget of NT$1.1225 trillion (approximately $36 billion) for the upcoming year, the largest in history.
This is not the first time Taiwan has provided cash or consumption vouchers to its citizens. During the financial crisis in the late 2000s, the government distributed consumption vouchers worth NT$3,600. In response to the COVID-19 pandemic, it issued consumption vouchers worth NT$3,000 and NT$5,000 in 2020 and 2021, respectively. In 2023, NT$6,000 was distributed to stimulate the economy, and in 2025, NT$10,000 was given to counter the impact of U.S. tariffs.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.