The Cabinet approved a NT$410 billion (US$12.6 billion) special budget proposal last Thursday that would mitigate Taiwan’s economic and security challenges, including those which may be brought on by the United States’ reciprocal tariffs. Premier Cho Jung-tai (卓榮泰) visited the Legislature this Monday to explain the bill further.
Four major axes are at the center of the "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Circumstances," (因應國際情勢強化經濟社會及國土安全韌性特別條例) as Cho explains, including supporting industries, stabilizing employment, ensuring people’s livelihoods, and strengthening resilience.
Opposition lawmakers questioned whether or not the bill includes a NT$100 billion (around US$3 billion) subsidy to Taiwan Power Company, and expressed intentions to oppose it. Cho explained that the subsidy would help stabilize consumer electricity prices, and asked the opposition for their support.
Regarding the source of the funding for the bill, Cho noted that the full amount would come from the surplus of previous years’ special budget, and would not incur debt.
KMT legislative caucus whip Fu Kun-chi (傅崐萁) said only 23% of the bill is in direct response to the U.S. tariffs, and requested that citizens be granted a cash handout from the NT$1.87 trillion (US$57.6 billion) of tax revenue collected over the past four years.
The KMT is pleased with the Cabinet’s proposal made last week to unfreeze portions of budgets, according to Fu, who said the party would support the Cabinet should the proposal be approved.