Taiwan President Lai Ching-te announced on the 18th that next year the government will pay NT$10,000 (about 440,000 won) in cash per person to everyone in the country. The aim is to share the massive economic growth windfall driven by the global artificial intelligence boom broadly with all citizens. But inside Taiwan, backlash led by the opposition is growing, arguing it is a populist policy aimed at the upcoming local elections.
According to a compilation of major media reports on the 18th, including Focus Taiwan and United Daily News, Lai said the administration will add NT$235.7 billion (about 10.4 trillion won) in expenditure to next year's central government general budget to fund the nationwide cash payout. Lai cited the upward revision of next year's central government revenue outlook to NT$3.9266 trillion (about 175 trillion won) as the basis for the payments. Thanks to the revenue increase, the government can maintain a balanced budget without adding new liability and share the so-called "AI dividends" with the public, the explanation went. The budget is expected to undergo review in Taiwan's Legislative Yuan this year. If it passes, the cash payment process is expected to begin before the Lunar New Year in February next year.
Taiwan's statistics authorities sharply raised the 2026 economic growth forecast to 11.05%, the highest in 39 years. Taiwan's economy posted a remarkable 14.15% growth rate in just the first half of this year. As global demand for artificial intelligence, high-performance computing and cloud services surges, enormous investment is pouring into Taiwan's semiconductor and information and communication technology supply chains. Lai said, "Robust exports have led the national economy, but workers in services or traditional industries and small and medium-sized enterprises have not fully enjoyed the benefits," defending the cash bonus payments.
However, inside and outside Taiwan's political circles, some noted there is political calculation behind the cash payout plan. Observers say it is a bid to firm up scattered voter support ahead of the local elections in Nov. and the presidential election in 2028.
At the same time, some saw it as an incentive to ensure the smooth passage of a record-large defense budget. Next year's Taiwan defense budget is projected at NT$1.1225 trillion (about 49.7 trillion won), expected to surpass NT$1 trillion for the first time. Because of this, public criticism is expected to mount over the heavy security expense burden. Some argued the administration aims to preemptively block this criticism by handing out cash.
The opposition accused the ruling Democratic Progressive Party (DPP) of flip-flopping on policies it had previously advanced and criticized what it called a double standard. Taipei Mayor Chiang Wan-an of the main opposition Kuomintang noted that when the opposition once proposed cash payments, the DPP opposed them as unconstitutional.
Taiwan authorities have often handed out cash to the entire population under the banner of boosting consumption or overcoming crises. Since the late-2000s financial crisis alone, this is the sixth time. The Taiwan government distributed consumption vouchers in 2020 and 2021 in response to the COVID-19 pandemic, and paid NT$6,000 (about 260,000 won) in 2023 to spur the economy and NT$10,000 in 2025 to address the impact of U.S. tariffs.