Taipei.- Taiwan proposes universal aid of 314 dollars per person by 2027, as part of a plan announced by President Lai Ching-te to distribute among the population part of the resources generated in a context of economic growth associated with the expansion of artificial intelligence (AI).
The initiative contemplates delivering 10,000 New Taiwan dollars, equivalent to about 314 US dollars, to each person. The proposal must be part of the central government’s general budget for 2027 and will require the approval of Parliament, where opposition parties hold a slim majority.
Lai presented the measure after a meeting dedicated to the preparation of next year’s government budget. The details of the public accounts will be released on Thursday.
To finance the cash distribution, the budget project will incorporate an expenditure increase of 235.7 billion New Taiwan dollars, about 7.407 billion US dollars.
The objective set by the Executive is to transfer to the population part of the economic benefits related to the growth of industries linked to artificial intelligence.
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Beneficiaries will be able to decide the use of the money
According to the Taiwanese Presidency, individuals and families will be able to freely determine the destination of the 10,000 New Taiwan dollars.
Among the possible uses mentioned by Lai are children’s educational expenses, elderly care, and other household obligations. The resources may also be used for consumption, with the intention of stimulating commercial activity.
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The president indicated that, even incorporating the disbursement corresponding to the aid, the budget planned for 2027 will maintain the balance between income and expenses and will not require an increase in net debt.
The proposal comes as official forecasts point to an expansion of the Taiwanese economy of 11.05% during 2026. If that estimate is realized, it would represent the island’s highest economic growth in 39 years.
Artificial intelligence boosts economic activity
Performance is related in part to its participation in the international supply chain for semiconductors, electronic equipment, and servers used for artificial intelligence applications.
The island is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading manufacturer of advanced semiconductors, as well as Foxconn, a company dedicated to the assembly of electronic products and servers intended for AI systems.
During the first semester, Taiwanese exports of technological components and devices recorded a year-on-year growth of over 47%, amid higher international demand for infrastructure related to artificial intelligence.
In this economic context, Taiwan proposes universal aid of 314 dollars with the intention of distributing part of the available resources among the population through a direct transfer.
Taiwan already made a similar payment
The initiative for 2027 has a recent precedent. Last year, the authorities also distributed 10,000 New Taiwan dollars in cash through a special budget.
That program was intended, among other objectives, to address the economic consequences of U.S. tariffs and rising inflation.
On that occasion, Taiwanese citizens, foreigners with permanent residency, and foreign spouses of Taiwan citizens who held a residence permit had access to the payment.
The new proposal must now go through the legislative process before the disbursement can be finalized during 2027.
Opposition questions timing of the announcement
The announcement drew criticism from the Kuomintang (KMT) and the Taiwan People’s Party (TPP), the two main opposition forces. Both organizations together hold a slim majority in Parliament.
The parties questioned that the Government presented the distribution of money when there are little more than three months left until the local elections scheduled for November 28.
Chen I-hsin, director of the KMT’s Culture and Communications Committee, pointed out that his party had proposed a transfer of 10,000 New Taiwan dollars in May.
According to information from the CNA agency, at that time the Government maintained that budgetary resources should be concentrated in areas such as national defense, infrastructure, and debt amortization.
Now, while Taiwan proposes universal aid of 314 dollars, the debate on the initiative will continue in Parliament during the 2027 budget discussion, where the Executive will need legislative backing to implement the new cash distribution.
