TAIPEI (TVBS News) — Taiwan's cabinet is poised to approve an ambitious NT$410 billion (US$12.6 billion) economic resilience package designed to fortify the island against mounting global pressures through 2027. The Executive Yuan, Taiwan's cabinet, will vote Thursday (April 24) on the wide-ranging proposal that would funnel substantial resources to struggling businesses, boost industrial competitiveness, and shore up critical infrastructure including the state-run Taiwan Power Company (台電).
Premier Cho Jung-tai (卓榮泰), the head of Taiwan's government, will outline the strategic rationale behind the legislation during a press briefing following the cabinet session. The proposal earmarks NT$93 billion (US$2.86 billion) specifically to bolster export industries affected by recent American tariff policies. An unnamed government source emphasized the comprehensive nature of the initiative, describing it as vital for strengthening both social welfare systems and national security. Officials have established NT$410 billion as the maximum allocation, with funding to be released in stages as global conditions evolve.
The sweeping legislation targets ten strategic sectors across Taiwan's economy and society, ranging from corporate financial assistance and export market diversification to employment programs and agricultural financing. Additional focus areas include higher education initiatives, support for disadvantaged populations, and enhanced military readiness and cybersecurity operations. Lawmakers have designed flexible funding mechanisms that tap into previous budget surpluses or allow debt issuance outside the normal constraints of the "Public Debt Act" (公共債務法), Taiwan's main government debt regulation. The proposal includes fiscal guardrails limiting total new debt to 15% of the central government's aggregate budget.
The legislation contains a retroactive provision dating back to March 12 and will remain in effect until Dec. 31, 2027, a timeline strategically designed to counter the effects of America's recent 25% steel tariff that has strained Taiwan's metal exporters since late March. Taking cues from Taiwan's pandemic economic interventions, the proposal classifies industry support payments as tax-exempt and shields them from potential creditor claims or legal seizures. ★
