Taiwan's government is choosing to subsidize rising costs instead of raising health insurance and energy prices, which is good news for ordinary people but adds pressure on the state budget.

President Lai Ching-te said Taiwan will not raise national health insurance premiums this year, even though the system needs more money. Instead, the government will use higher-than-expected tax revenue, with economic growth possibly topping 12%, to cover the gap.

The same approach applies to gas and electricity. Taiwan's state oil and power companies, CPC and Taipower, have been absorbing higher costs and losing money, so the government is sending a supplementary budget to the legislature to subsidize them rather than pass the costs on to consumers.

The catch is that this budget needs opposition party support to pass, and Lai used the event to publicly ask for that backing, even appealing to the medical community to help lobby for it.

Lai also pointed to a broader "Healthy Taiwan" push, aiming to extend average lifespan and cut cancer deaths and chronic disease by 2032.

Outlook: Whether prices stay stable depends on the opposition-controlled legislature approving the subsidy budget; if it stalls, pressure to raise health insurance or energy prices could return.