Taiwan to Distribute NT$10,000 Cash Handout as Economy Hits 39-Year High

Taiwan's economy is poised for its strongest performance in 39 years, prompting President Lai Ching-te to announce a universal cash distribution of NT$10,000 per person. This initiative, framed as sharing the "AI dividend with all citizens," will be funded through the upcoming central government budget for 2025.

President Lai emphasized that the budget will maintain fiscal balance and avoid new debt. The government plans to allocate NT$235.7 billion for the cash handout, aiming to distribute the funds before the Lunar New Year if the Legislative Yuan approves the budget on time. This move is seen as a way to share the benefits of Taiwan's economic boom, particularly in the technology and semiconductor sectors.

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AI dividend, shared by all citizens.

In a separate development, the Executive Yuan, under Premier Cho Jung-tai, has decided not to co-sign the "Taiwan Youth Growth and Future Account Act," passed by the opposition parties. President Lai criticized the act as a violation of the separation of powers and an infringement on executive authority. Instead, the government will proceed with its own plan to issue a NT$5,000 "growth allowance" to eligible youth, which has already been incorporated into the 2025 budget.

This decision highlights ongoing political tensions between the ruling party and the opposition, particularly concerning social welfare policies and budget allocation. The government maintains that its proposed growth allowance is a more direct and fiscally responsible approach compared to the opposition's legislative proposal.

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The growth allowance does not require legislation; the government can directly implement it.