Taiwan to Give NT$10,000 Cash Bonus to All Citizens Amid Record GDP Growth Driven by AI Boom

Taiwanese media outlets, including the United Daily News and the China Times, reported today (the 18th) that the Taiwanese president has announced a plan to distribute cash handouts of 10,000 Taiwanese dollars per person—equivalent to approximately 440,000 won—to all citizens next year.

Taiwanese President Lai Ching-te explained the plan the previous day after receiving a report from the Executive Yuan (equivalent to the Cabinet) regarding the "Central Government General Budget for Fiscal Year 2027" at the Presidential Office (equivalent to the Blue House).

He stated that the fruits of economic growth resulting from surging global demand for artificial intelligence (AI), high-performance computing (HPC), and cloud services would be shared by all citizens through an "AI Bonus" of 10,000 Taiwanese dollars per person.

Citing the latest economic outlook from Taiwan's Directorate-General of Budget, Accounting and Statistics (DGBAS), he emphasized that this is the result of the joint efforts of all Taiwanese people, noting that the economic growth rate for gross domestic product (GDP) this year is projected to reach 11.05%, the highest in 39 years.

He also stated that the government should not merely look at average figures, but must also look after those below the average and care for families working hard to make a living.

Under the premise of "balanced government revenue and expenditure" and "virtually zero debt," the Taiwanese government plans to increase and compile next year's budget to 235.7 billion Taiwanese dollars (approximately 10.4 trillion won).

The government budget proposal will be finalized at a meeting regarding the 2027 central government general budget presided over by the Premier (equivalent to the Prime Minister) on the 20th.

A Taiwanese government official expressed expectations that if the Legislative Yuan (parliament) passes the central government general budget for next year before the end of this year, the 10,000 Taiwanese dollar bonus could be received before the Lunar New Year in February next year.

The official emphasized that unlike past cases of cash distributions aimed at preparing for economic downturns, the cash distribution being pursued this year aims to actively share the benefits brought by robust economic growth.

However, criticisms of hypocrisy have also emerged surrounding the Taiwanese government's "cash bonus" distribution.

Taipei Mayor Chiang Wan-an, a member of Taiwan's main opposition Kuomintang (KMT) party, pointed out that President Lai must clearly state his position on the sudden policy U-turn, noting that when the Kuomintang and the second opposition Taiwan People's Party proposed distributing 10,000 Taiwanese dollars in cash last year, the ruling Democratic Progressive Party (DPP) criticized it as unconstitutional.

Analysis suggests that behind the cash distribution lie tactical motives to "boost enthusiasm for the local elections to be held in November" and "lay the groundwork for a reelection bid in the upcoming presidential election in 2028."

In particular, some interpretations suggest it is intended to use the cash distribution as leverage to secure the passage of a record-breaking defense budget of 1.1225 trillion Taiwanese dollars (approximately 49.7 trillion won) in the Legislative Yuan.

There have been five previous instances where Taiwanese authorities distributed consumption coupons or cash to boost consumption.

To overcome the financial crisis in the late 2000s, consumption coupons worth 3,600 Taiwanese dollars were distributed, and during the COVID-19 pandemic in 2020 and 2021, consumption coupons worth 3,000 Taiwanese dollars and 5,000 Taiwanese dollars were distributed, respectively.

Additionally, 6,000 Taiwanese dollars in cash was distributed to boost the economy in 2023 near the end of the COVID-19 pandemic, and 10,000 Taiwanese dollars in cash was distributed in 2025 to respond to the shock of U.S. reciprocal tariffs.

(Photo: Capture from the Office of the President, Taiwan; Yonhap News)
※ Please note: This article was translated by AI and may contain errors.