Taiwan to distribute $7.2 billion cash handout as economy grows 11.05%

Taiwan's economy surged in the first half of 2024, achieving an impressive 11.05% growth rate. This robust economic performance has empowered the government to distribute NT$235.7 billion (approximately $7.2 billion USD) in cash to its citizens, with each individual set to receive NT$10,000. Premier Cho Jung-tai emphasized that this handout is debt-free and a source of national pride, reflecting the country's improved fiscal capacity.

The announcement came during a dinner hosted by the Republic of China Primary Healthcare Association, where Premier Cho highlighted the government's fiscal responsibility. He noted that the central government's budget for the upcoming year is balanced, with both revenue and expenditure at NT$3.9266 trillion. This marks a significant achievement, as the government has not presented a balanced budget in many years. Under President Lai Ching-te's careful management, Taiwan has achieved financial health, with its outstanding debt ratio decreasing to 22.4%, well below the 40.6% threshold.

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This is debt-free, and everyone can receive it with great pride.

Key budget allocations for the coming year include NT$1.1225 trillion for defense, NT$1.3438 trillion for social welfare, and NT$1.3597 trillion for subsidies to local governments. Additionally, NT$1 trillion is allocated to the National Health Insurance program to ensure its sustainability and support healthcare personnel. The government is also investing NT$373 billion in a "new population strategy," which includes a NT$5,000 monthly growth allowance for children aged 0-18, aiming to provide support for families and encourage childbirth.

Premier Cho reiterated that the substantial economic growth in the first half of the year provided the financial flexibility for the cash distribution. He stated that after the budget was finalized, the president instructed a further review, leading to the decision to provide the NT$10,000 handout. This measure, funded by the nation's collective hard work and strong financial structure, allows citizens to receive the money with pride.

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We have achieved financial health, without increasing any new national debt, because the GDP has expanded and the outstanding debt balance has continued to decrease, now down to 22.4%, a considerable distance from the highest threshold of 40.6%, representing that we are a financially sound country and the result of the accumulation of all industries.