The President of Taiwan, Lai Ching-te, has announced a plan to distribute 10,000 TWD (approximately $314) to each citizen. This initiative is a response to the rapid growth of industries associated with artificial intelligence, as reported by FocusTaiwan.
To fund the program, the government intends to increase the central budget by 235.7 billion TWD (around $7.4 billion).
The rationale for these payments is based on an improved assessment of government revenues. This allows the authorities to maintain a balanced budget without incurring new obligations while sharing the benefits of the global AI boom with the public.
The Legislative Yuan of Taiwan is expected to review the budget by the end of the year. If approved, the payouts are anticipated to commence by February 2027.
Moreover, Taiwan's Directorate-General of Budget, Accounting and Statistics has raised its economic growth forecast for 2026 to 11.05%, marking the highest rate in 39 years.
In the first half of the year, the country's economy expanded by 14.15%. Lai Ching-te attributed this growth to strong exports but noted that workers in the service sector, traditional industries, and small to medium-sized enterprises have not fully benefited from this expansion.
Some observers interpret this initiative as a political maneuver ahead of the presidential elections in 2028, while others link it to discussions regarding the defense budget, which is expected to exceed 1 trillion TWD (about $31 billion) for the first time.
The Mayor of Taipei, Chiang Wan-an, pointed out that the ruling Democratic Progressive Party had previously opposed cash payments proposed by the opposition, labeling them as unconstitutional. Taipei has become a focal point for public debate surrounding this initiative.
It is worth noting that on August 13, Taiwan's Ministry of Digital Development reported a cyberattack on government institutions using AI agents.