Taiwan is preparing to share the benefits of the technology boom directly with its population. President William Lai has announced an unprecedented cash payment of NT$10,000 to every citizen. The government plans to allocate NT$235.7 billion, equivalent to approximately US$7.4 billion, in next year’s budget for the program. The move comes as Taiwan’s economy is surging on strong global demand for semiconductors and artificial intelligence technologies.
The announcement followed the second briefing on the draft central government budget. Lai emphasized that even after the one-time payment, the government intends to maintain a balanced budget without increasing net debt.
The economic figures are striking. First-quarter GDP growth was revised up to 15.43%, while preliminary data showed second-quarter growth of 12.93%. The economy has expanded at double-digit rates for three consecutive quarters, while first-half growth reached 14.15%, the strongest performance in 50 years. The full-year growth forecast has also been raised from 9.64% to 11.05%, the highest level in 39 years.
The main drivers are Taiwan’s semiconductor industry, information technology sector, and manufacturing supply chains. Global demand for AI, high-performance computing, and cloud services has boosted orders, exports, and capital investment. Lai urged the country to take advantage of the opportunity while ensuring that households outside the high-tech sector also benefit from the economic expansion.
If Taiwan’s parliament approves the budget by the end of the year, the payments could reach citizens before the Lunar New Year.
The cash payout is only one element of the proposed budget, which focuses on five major priorities.
The first is family support. The government plans to allocate NT$373 billion to child benefits covering children from birth through age 18 without requiring separate legislative approval, while also expanding parental and marriage leave. The second priority is defense. Total defense spending is expected to reach NT$1.12 trillion for the first time, exceeding 3% of GDP. Lai described defense investment as an investment in peace.
The third is the “Smart Nation 2.0” initiative and support for small businesses. Technology programs will receive NT$229.2 billion, a 12.7% increase, including NT$40.6 billion for ten new AI infrastructure projects. The fourth priority is infrastructure, with NT$728.8 billion earmarked for roads, railways, water infrastructure, and regional development. The fifth is NT$1.36 trillion in transfers to local governments.
Taiwan is effectively turning the AI boom into a new social contract. The government is capturing part of the economic gains generated by its technology sector and returning them to citizens through direct payments while simultaneously expanding defense and infrastructure spending. The plan still requires final approval from parliament.
Source: Taipei Times
Image: Office of the President, Republic of China (Taiwan)
