Chuo Rongtai: Distributing 10,000 requires borrowing 100 billion TWD! Research shows that cash distribution has a worse effect than consumption vouchers.

Recently, the Legislative Yuan passed the Kuomintang version of the bill, which aims to distribute 10,000 NT dollars in cash to everyone by the end of October. Today, Premier Su Tseng-chang, with ID number (17, explained that in recent years, the excess tax revenue has reached approximately 1 trillion 870.7 billion NT dollars. However, after deducting amounts allocated to local governments, transferring to special funds, repaying debts, and previous special budgets for fighter jets and pandemic response, the current available balance is only 443.6 billion NT dollars. If the Kuomintang version of distributing 10,000 NT dollars is implemented, it would require borrowing an additional 101.4 billion NT dollars. He also pointed out that the Legislative Yuan had unconstitutionally increased expenditure without legally consulting the Executive Yuan.

The Kuomintang version of the budget increases by 135 billion TWD, with an additional cash distribution of 10,000.

According to reports, in response to the changes in the international situation brought about by Trump's tariff policy, the Executive Yuan proposed a draft of the "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Situations" on April 24 this year. The original budget scale is 410 billion, covering three main areas: national security resilience, economic industry support, social support ) Taipower subsidies, health insurance and labor insurance funds, and care for vulnerable groups (.

In response, the blue, green, and white parties all proposed their own plans, and ultimately, the Kuomintang version passed due to its numerical advantage. Unlike the Legislative Yuan version, the Kuomintang version increased the total budget from 410 billion to 545 billion. It removed the original subsidy of 100 billion to Taipower and instead distributed 10,000 cash to all citizens, which must be executed by October 31 of this year.

The Kuomintang Legislative Yuan party group believes that the same approach of distributing money to stimulate the economy should be adopted as in Singapore and South Korea.

In response, the Kuomintang Legislative Yuan caucus stated that in the year 113, the central government's tax revenue exceeded expectations by NT$528.3 billion, and in recent years, the cumulative tax revenue has exceeded NT$1.87 trillion. They suggested that this should be compared to Singapore's cash handout of 800 Singapore dollars, approximately NT$18,000, and South Korea's economic stimulus policies, which include issuing 400 billion won in consumption vouchers and 89.8 billion won in cash vouchers. Furthermore, the proposal to eliminate the NT$100 billion budget allocation for Taipower is a call for the Executive Yuan to properly address the mistakes in energy policy.

National Chengchi University Professor Lien Hsien-Ming's research: Universal cash distribution has the worst effect on stimulating the economy.

However, regarding the comments that distributing money can save the economy, Lin Chih-Chieh, a distinguished professor at the College of Technology and Law of National Yang Ming Chiao Tung University, has criticized that in the past, distributing money was always accompanied by supporting measures, legitimacy, and hopeful goals.

President Ma Ying-jeou issued consumption vouchers during his term because the global financial tsunami occurred in 2008. The National Development Council suggested the use of consumption vouchers in hopes of contributing to GDP.

During President Tsai Ing-wen's tenure, there was a time when the global pandemic was rampant, and she issued triple vouchers and quintuple vouchers to help businesses, hoping to stimulate consumption. After the pandemic, considering that all industries needed to recover, and with proper fiscal control, a budget was allocated to distribute cash.

Professor Lian Hsien-Ming from the Department of Finance at National Chengchi University also compared the stimulus effects of the "Triple Stimulus Voucher" in 2020, the "Quintuple Stimulus Voucher" in 2021, and the "Cash Distribution" in 2023. The best effect was achieved with the triple voucher exchanged for one thousand dollars, followed by the quintuple voucher's effect on stimulating the economy, while the cash distribution had the worst effect, as everyone just saved it up, failing to stimulate the economy.

Lin Zhi-Jie stated: First, the budget should be allocated by the Executive Yuan and reviewed by the Legislative Yuan. Second, there should be justifiable reasons such as financial crises or global pandemics. Third, there should be supporting measures, such as government subsidies in the form of double vouchers, where the public can spend one hundred dollars to receive products worth three hundred dollars, to revitalize industries or support businesses and stimulate consumption.

She pointed out that the current policy of distributing ten thousand dollars to everyone does not exclude the wealthy. A family of six living in a luxury apartment can receive sixty thousand, and there are no regulations on spending or where to spend it to benefit businesses. People might just save the money, which does nothing to stimulate the economy. She questioned the purpose of this cash distribution policy, stating that aside from the Kuomintang thinking it can save the recall vote on July 26, there is no other intention.

Executive Yuan Premier Su Tseng-chang: Distributing 230 billion requires borrowing over 100 billion TWD.

The Executive Yuan Premier Su Tseng-chang stated today that from the tax revenues in the years 110 to 113 of the Republic of China, the actual revenue exceeded the budgeted amount by approximately 1 trillion 870.7 billion yuan. However, after deducting allocations to local governments, transfers to special funds, debt repayment, and the special budgets for previous fighter jets and the pandemic, the remaining available balance is 443.6 billion yuan. The special budget version passed by the Legislative Yuan includes a universal cash distribution, amounting to 545 billion yuan, and it is estimated that about 101.4 billion yuan will need to be borrowed.

Zhuo Rongtai also stated that according to Article 70 of the Constitution and Article 91 of the Budget Law, when the Legislative Yuan intends to increase the Executive Yuan's expenditures through legal and budgetary proposals, it must first consult the Executive Yuan. However, the Legislative Yuan did not do this, thus it has already violated the Constitution and the law.

Taiwan Statebuilding Party's Wang Wan-yu: Firmly opposes the indiscriminate issuance of cash without clear policy goals and without excluding the wealthy.

In response, the chairperson of the New Power Party, Wang Wan-yu, stated that she firmly opposes the policy of universal cash distribution, regardless of which political party is involved. She believes that distributing cash without excluding the wealthy and without clear policy objectives is a waste of national resources, as it cannot stimulate the economy and merely flatters voters. She argues that the 230 billion could be used for many things, such as public childcare, preschool education, placement, social work, and poverty alleviation. However, the Kuomintang cannot think of any of these and only wants to splash money around, buy votes, and save themselves from recall. She further criticized such a party, stating that they do not even have the qualification to be in the opposition.

Shen Boyang: The responsibility for budget preparation lies with the Executive Yuan.

DPP legislator Shen Boyang also criticized the KMT's actions from the perspective of constitutional boundaries. He stated that the Executive Yuan must administer according to the law, but the laws are enacted by the Legislative Yuan. If the Legislative Yuan can dictate what the Executive Yuan must enforce, then this country only needs a Legislative Yuan. This is why the constitution stipulates that certain powers and responsibilities lie with the Executive Yuan, not the Legislative Yuan. Budget preparation is the responsibility of the Executive Yuan. This is also why in the past, the Executive Yuan indeed implemented cash measures to stimulate the economy, but this was not initiated by the Legislative Yuan.

This article is about Zhou Rongtai: Distributing 10,000 requires borrowing 100 billion New Taiwan dollars! Research shows that the effect of cash distribution is worse than that of consumption vouchers. It first appeared in Chain News ABMedia.