TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) warned Wednesday that repeated cash handouts could erode Taiwan’s long-term strength as the government prepares to borrow NT$400 billion (US$12.27 billion) next year, with NT$236 billion going to a NT$10,000 payout to individuals.
Borrowing should serve national priorities such as arms purchases, industrial development, and building Taiwan into a “smart technology island,” Cho said — instead of being spent on repeated giveaways that “cancel out the nation’s accumulated strength.”
He added that Cabinet ministers will lead talks with the Legislative Yuan but the Cabinet will step in directly if needed. Secretary-General Chang Tun-han (張惇涵) will coordinate negotiations, per CNA.
Cho said the government’s legislative priorities next session will center on industrial upgrades, intergenerational care, and the foundations of national power. Plans include backing key industries, funding local infrastructure projects, expanding tourism, continuing Long-term Care 3.0, and strengthening anti-fraud efforts.
He also addressed record-high centrally allocated tax revenues for local governments, which will rise 90% to NT$848.82 billion. Under the proposed guidelines, the central government will handle childcare, social safety nets, and flood control, share cultural and port costs with local governments, and leave school electricity bills to counties and cities. Talks with local leaders will begin this week, he said.
