Will the Universal Cash Handout Increase from NT$10,000 to NT$20,000? Premier Cherng-Tai Chu Answers with Budget Breakdown

The Executive Yuan meeting today (20th) officially passed the 2027 central government budget. Both revenue and expenditure exceeded NT$3.9 trillion, setting a new historical high, with NT$235.7 billion allocated for the 'AI Dividend for All' universal cash handout of NT$10,000 per person.

In response to opposition parties questioning the amount as too low and demanding an increase to NT$20,000, Premier Cherng-Tai Chu explicitly stated 'absolutely not' during a post-meeting press conference, presenting the budget structure and explaining that forcibly increasing the amount would severely crowd out critical social welfare budgets such as elderly farmer allowances and National Pension.

Why can't the NT$10,000 handout be increased to NT$20,000? Premier Cherng-Tai Chu presented a detailed NT$244.2 billion budget breakdown to illustrate the trade-offs.

The NT$235.7 billion allocated for the NT$10,000 handout was carefully calculated by the Executive Yuan on August 4, combining NT$43 billion in newly projected tax revenue, NT$179 billion from debt refinancing, and NT$20 billion reallocated from other programs—an optimal arrangement based on the nation’s overall fiscal capacity.

Chu emphasized that increasing the handout by another NT$10,000 (requiring approximately NT$240 billion more) would necessitate suspending or cutting several major social welfare and childcare subsidies:

- Elderly Farmer Allowance: Budget to increase from NT$8,000 to NT$10,000 - National Pension: Budget to increase from NT$4,000 to NT$5,000 - Social and Family Support: Including six major social welfare subsidies, population growth incentives, and workplace salary subsidies

The total of these budgets amounts to exactly approximately NT$244.2 billion. Chu stressed, 'Are we really going to eliminate these policies supporting vulnerable groups just to increase the handout by NT$10,000? Absolutely not!' Haphazardly increasing the amount would severely crowd out other critical policies. Based on strict fiscal discipline and long-term national sustainability, the Executive Yuan has proposed a responsible and comprehensive AI Dividend sharing system.

Regarding whether local governments might independently increase the handout, Chu noted that the central government’s total fiscal support to localities for the coming year—including general revenue-sharing grants, unrestricted subsidies, and project-based funding—reaches NT$1.3579 trillion, officially surpassing the trillion-yuan threshold.

He stated, 'If local governments have fiscal surplus and are willing to increase the handout independently, the public will naturally welcome it.' He also reminded all levels of local government to prioritize their own fiscal discipline and stability when considering such measures.

On preparations for the NT$10,000 handout, the government said it will accelerate system setup and preparatory measures according to established procedures this year. Premier Chu has instructed the Ministry of Finance to reference past successful experiences of universal cash distributions, urgently integrating payment channels so that once the Legislative Yuan completes its three-read review of the 2027 budget, the cash disbursement can be launched in the shortest possible time.