Taiwan premier defends cash handout plan as debt-free

Aug 20, 2026

Taiwan's government says next year's NT$10,000 cash handout to every citizen will be funded without new borrowing, which it frames as good news for people and for the country's finances.

  • Premier Cho Jung-tai said last year's handout required borrowing, but next year's budget is balanced with no deficit and no new debt.
  • He rejected opposition claims of "double standards" and of draining the country, calling the plan wealth-sharing instead.
  • An extra NT$235.7 billion is being added for an "AI dividend" shared with the public, without cutting the six existing spending areas.
  • Cho complained that this year's budget review dragged on for nearly a year and gutted funding for anti-fraud work, culture, and public broadcasting.
  • Outstanding government debt as a share of the economy is at its lowest level in decades, he said.

Outlook: The fight now moves to the legislature, where the opposition-controlled chamber will decide how much of the budget survives.

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