TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) announced plans on Wednesday to use NT$410 billion (US$12.6 billion) of the government surplus to support the economy, the Taiwan Power Company, national security, and social programs.
Cho spoke after the Cabinet approved a draft of the “Special Act Responding to International Trends, Strengthening Economic, Social, and National Security Resilience,” which outlined the funding, per CNA. Cho said the plan earmarks NT$150 billion for national security, NT$93 billion in economic support, and NT$167 for social support programs.
Reporters asked Cho if the plan was designed to make up for budget cuts and freezes passed by the legislature in January. In response, Cho said the government planned a NT$300 billion special act to fund various items earlier this year, and increased the amount after the US imposed tariffs and reorganized trade.
Cho said NT$100 billion of the social support allocation will subsidize Taiwan Power Company. The legislature cut a planned NT$100 billion subsidy for the state-owned utility from the budget, and froze a separate subsidy of the same amount.
Cho said the social support money would also fund talent cultivation and support services for vulnerable groups by NT$20 billion and NT$17 billion, respectively. It would also fund the national health and labor insurance funds by NT$20 billion and NT$10 billion, respectively.
The Cabinet announced a NT$88 billion subsidy plan for businesses affected by US tariffs earlier in the month. Cho said the NT$93 billion economic support portion of the new plan includes this amount, and NT$5 billion was added to expand domestic demand.
Asked about expanding defense trade with the US to offset Taiwan’s trade surplus, Cho said that while the US is a big market, it is not the only one. He said the government makes defense purchases based on financial capacity and defense needs.
In February, the Cabinet said the government ran a NT$528.3 billion surplus last year. Before the US tariffs were announced, it said the excess funds should be used to pay off debt, while the government's comptroller suggested in March that the money could be used to make up for defense cuts.
