TAIPEI (Taiwan News) — Taiwan’s opposition parties on Monday criticized the ruling DPP over what they described as a shifting stance on cash handouts.
President Lai Ching-te (賴清德) announced Monday that the government would issue a cash handout of NT$10,000 (US$314) per person in 2027, describing it as a way of sharing the fruits of economic growth. Premier Cho Jung-tai (卓榮泰) stressed that the handout would not affect the government’s other spending priorities, per TVBS.
The move drew criticism from both the KMT and TPP, with both parties highlighting the DPP’s previous opposition to a cash handout proposed by the opposition during the campaign to recall KMT lawmakers. TPP Chair Huang Kuo-chang (黃國昌) noted that major DPP politicians had previously spoken publicly against the opposition’s cash handout proposal, per Newtalk.
Huang said Cho had previously suggested that NT$10,000 could only buy a remote-controlled plane, while DPP Taipei mayoral candidate Puma Shen (沈伯洋) had described the handout as “a CCP tactic that aims at bankrupting Taiwan before pushing for unification.” TPP Legislative Caucus Convener Chen Ching-lung (陳清龍) said the DPP was portraying the same policy negatively when it was proposed by the opposition, per UDN.
Citing previous DPP criticism of a lack of fiscal discipline and legal frameworks, KMT Legislative Caucus Secretary-General Lin Pei-hsiang (林沛祥) urged the government to clearly state which law authorized the handout and where the funding would come from, per Tai Sounds. The KMT caucus also called on the government to establish a formal mechanism for distributing surplus tax revenue if it supports using such revenue for cash handouts.
KMT Legislator Hsu Yu-chen (許宇甄) added that since Lai had previously questioned what good NT$10,000 could do for families, he should instead give out NT$20,000, per UP Media.
Shen responded to the criticism by saying that he does not oppose cash handouts as long as they do not add to the national debt, benefit vulnerable members of society, and are included in the fiscal year’s budget, per Storm Media. He added that cities across Taiwan could increase the handouts as long as they comply with those three principles.
Academics are divided over whether cash handouts are good policy, but generally agree that a NT$10,000 handout would have a limited impact on the economy as a whole, per Yahoo News.
Chinese Culture University Professor Chen Sung-hsing (陳松興) suggested that taking tax revenue from Taiwan’s growing technology sector and distributing it to the public through cash handouts could help balance the benefits of economic growth. However, Chen said the government should consider other spending priorities when deciding how to use surplus tax revenue.
National Central University Research Center for Taiwan Economic Development Director Wu Ta-jen (吳大任) said a NT$10,000 handout would have a greater impact on lower-income earners while placing a relatively limited burden on the budget. However, Wu said that without fundamental changes to Taiwan’s economy, the handout may only provide short-term relief.
National Sun Yat-sen University Professor Jang Chyi-lu (張其祿) echoed Wu’s assessment, warning that a universal handout prevents the government from concentrating resources on those who need the money most.
