Cash Handout of NT$10,000 or Consumption Vouchers? Executive Yuan Explains Key Policy Considerations, Rejects 'NT$30,000 Boost' Demand

In response to President Lai Ching-te's recent announcement of a universal NT$10,000 cash handout for next year, differing views have emerged between the business sector and the government regarding the disbursement method. Hsu Shu-po, chairman of the Republic of China National Chamber of Commerce, expressed concerns during an interview yesterday (20th), stating that direct cash payments would fail to effectively stimulate domestic demand. He urged the government to shift the policy from cash disbursement to consumption vouchers.

Today (21st), Chang Tun-han, Secretary-General of the Executive Yuan, responded and clarified the policy rationale.

Will a universal NT$10,000 cash handout fail to boost market consumption? Executive Yuan reaffirms 'no usage restrictions'

Hsu Shu-po strongly advocated that the government should change the 'universal NT$10,000 disbursement' plan into 'consumption vouchers' to stimulate the economy. He argued that once cash is distributed, most of it will be saved by citizens rather than spent, resulting in no real boost in consumer demand. He pointed out that without consumption incentives, the revitalization effect on the struggling domestic market and physical business districts would be significantly diminished.

In response to the business sector's appeal, Executive Yuan Secretary-General Chang Tun-han formally responded today. Chang stated that when President Lai Ching-te announced the universal NT$10,000 cash handout, he also expressed the hope that 'all citizens could freely use the funds for various purposes.' Chang further relayed President Lai's remarks: 'This money can be used to pay tuition fees, care for the elderly and children, and reduce household burdens. Of course, it can also be used for consumption to revitalize business districts and various industries.' He reiterated that the Executive Yuan aims for the 'universal NT$10,000 disbursement' to genuinely assist every individual's immediate needs, rather than restricting it to a single usage.

Is the KMT's call for a 'universal NT$30,000 disbursement' feasible? Chang Tun-han: Strictly uphold the three fiscal principles

After clarifying the policy considerations behind the 'universal NT$10,000 disbursement,' Chang Tun-han also addressed today the policy proposal made yesterday by Fu Kun-chi, the KMT caucus convener, who publicly called for a 'universal disbursement of NT$30,000.' Chang clearly stated that the Executive Yuan's promotion of the 'universal NT$10,000 disbursement' policy is based on three core principles: ensuring no increase in actual government debt, avoiding the displacement of other established policy programs, and ensuring full legal and constitutional compliance in the implementation process.

In response to the opposition camp's demand to increase the amount to NT$30,000, Chang specifically reiterated constitutional norms. He explained that national budget formulation falls under the authority of the Executive Yuan, while the Legislative Yuan is responsible for review. Moreover, according to the explicit provisions of the Constitution, the legislative body has no authority to decide on increasing government budget expenditures.

Chang emphasized that, given the high public expectations for the 'universal NT$10,000 disbursement' policy, the Executive Yuan once again calls on all political parties within the Legislative Yuan—both ruling and opposition—to strictly adhere to the relevant procedural timelines stipulated in the Constitution and the Budget Act. The Executive Yuan hopes that during the upcoming legislative session, the Legislative Yuan will complete the budget review process on schedule and pass the budget, enabling the Executive Yuan to smoothly implement this policy.