Taiwan to add universal NT$10,000 cash handout to FY2026 budget while keeping defence above NT$1 trillion

Taiwan plans to increase FY2026 central government spending by NT$235.7 billion to fund a universal cash handout of NT$10,000 per person while maintaining a balanced budget with effectively zero net borrowing and keeping total defence spending above NT$1 trillion. President Lai Ching-te said the payout would ensure that "AI dividends are shared by all" after a sharp upward revision to Taiwan's growth outlook, with first-half economic growth reaching 14.15% and the full-year forecast raised to 11.05%, potentially the highest in 39 years. Premier Cho Jung-tai said real revenue growth of NT$43 billion and a revenue-expenditure surplus of NT$193 billion would provide about NT$236 billion for the cash distribution without crowding out existing policy plans. Taipei Mayor Chiang Wan-an called for raising the payment to NT$20,000, while Taipei's finance department said local reserve funds cannot be equated with the central government's stronger tax-revenue-driven fiscal room.

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