Taipei: Taiwan’s Executive Yuan announced on Thursday its decision to distribute NT$10,000 cash handouts to Taiwanese citizens, reversing its earlier stance against the measure proposed by opposition lawmakers.
According to Focus Taiwan, the Cabinet had initially dismissed the idea of issuing NT$10,000 (US$333) per citizen, citing concerns that the payouts would necessitate government borrowing. The Cabinet had also considered taking the issue to the Constitutional Court, contending that the cash handout measures were “unconstitutional” since they were enacted by the Legislature instead of being initiated by the executive branch.
However, the Cabinet has now decided to retain the cash handout provisions by amending a special act initially passed by the Legislature in July. Cabinet spokesperson Michelle Lee explained that the policy shift followed consultations with various sectors, though she did not provide further details. Lee added that the Cabinet plans to amend the measures to make them constitutional, turning them into an initiative of the Executive Yuan.
The eligibility of noncitizen permanent residents and other legally resident foreigners in Taiwan for the handouts remains uncertain. In response to an inquiry by CNA, the Cabinet indicated that the Ministry of Finance would only have a definitive answer after the proposed amendments receive legislative approval.
The proposed amendments, which still require legislative approval, are part of a broader effort aimed at strengthening Taiwan’s security infrastructure and supporting businesses and individuals affected by recent U.S. tariffs. If the amendments pass, the Cabinet will need to submit a separate appropriation bill to access the required funding.
On Thursday, the Cabinet approved the proposed amendments to the special act, which includes plans to allocate an additional NT$45 billion through borrowing. This is in addition to the NT$545 billion already designated in the special act. Of the NT$45 billion, NT$20 billion is earmarked for Taiwan Power Co. (Taipower) to enhance power grids and relocate cables underground, as stated by Deputy Economics Minister Ho Chin-tsang during the briefing. Ho clarified that this NT$20 billion is separate from the Cabinet’s prior proposal to provide NT$100 billion in aid to the financially troubled Taipower, which was not included in the special act due to opposition lawmakers’ objections.