BackTaiwan to share its economic growth with citizens - here's how
The step has been taken to protect the island from global economic shocks, including subsidies for electricity prices and labor and health insurance.
PremiumSharing Taiwan's economic growth with everyone, Premier Su Tseng-chang on Wednesday announced that the island plans to give cash payouts of nearly $200 to every citizen this year, according to the news agency Reuters.
In 2021, the export-reliant company, a global tech powerhouse for products including semiconductor chips grew 6.45%, the fastest rate since it expanded 10.25% in 2010.
However, the government has made plans to plough an extra T$380 billion ($12.4 billion) in tax revenue from last year into the economy as the economic growth is expected slow in 2022 and 2023, as per Reuters report.
Su also said that a total of T$140 billion, part of tax revenue, would be spent as cash payouts and each citizen would get T$6,000 ($195.61).
Speaking to reporters about New Year blessing to citizens, he said, “The fruit of economic achievements will be shared by all citizens, from young to old. The potential payout requires approval from parliament, where the ruling Democratic Progressive Party has a majority."
"We wish to give all citizens a New Year blessing after the beginning of the Lunar New Year," he added, referring to the week-long holiday that starts on January 20, Reuters reported.
He did not give details of how the government would deliver the cash payouts yet.
Taiwan is a major producer of semiconductors used in everything from cars and smartphones to fighter jets. Its economy continued to grow stably during the Covid-19 pandemic in recent years helped by strong chip demand for consumer electronics as more people worked from home.
Taiwan's central bank in December cut its 2022 estimate for gross domestic product (GDP) growth to 2.91% from its previous forecast of 3.51% in September.
For 2023, it projected GDP would grow 2.53%. The economy grew 4.01% in the third quarter from a year earlier.
(With Reuters inputs)
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
