TAIPEI (TVBS News) — The Taiwanese government recently announced that citizens will receive a one-off NT＄6,000 cash payment due to a national tax revenue surplus, but public opinion remains divided on whether this would actually help locals and their businesses.
Taiwan Premier Su Tseng-chang announced that of the NT＄450 billion excess revenue, NT＄140 billion will be reallocated back to the public by March 2023.
Coining the payment as “sharing with the people,” the Taiwanese government seemingly hopes the public would spend it and boost the domestic economy, like the previous stimulus vouchers.
However, will the move actually boost the economy?
The decline in export orders in the second half of 2022 remains one of the biggest problems to be addressed, according to National Central University Economics Professor Dachrahn Wu, as manufacturing and semiconductor industries were hit hard.
Even though the government hopes that the cash payments could help boost the economy, experts point out that it may actually result in inflation getting worse.
Taiwan Institute of Economic Research research fellow Darson Chiu remarked, "In giving cash, we will increase the money supply."
"So, of course, there will be inflation for a longer period of time, but this inflation won't necessarily be a 'bad' one."
Chiu pointed out that this type of inflation is different in that it doesn’t mean costs are rising-- it just means demand may be on the rise.
Even so, unlike previous stimulus vouchers, cash payments don’t have restrictions on where the money can be spent or by when.
With stimulus vouchers, the government can better help the industries that actually need it, within a certain period of time.
Today, with cash payments, some may decide to save it for a rainy day instead of spending this new year bonus from the government.
