The Executive Yuan yesterday decided to inject more funds into stimulus packages to boost domestic consumption, National Development Council Deputy Minister Kao Shien-quey (高仙桂) said.
The Council of Agriculture plans to double its budget from NT$200 million (US$6.12 million) to NT$400 million to subsidize farmers’ purchases of small agricultural machinery and farming tools, Kao said.
In addition, given the success of a Tourism Bureau subsidy program that gives visitors rebates of up to NT$1,000 on their hotel expenses, the government has decided to increase the number of subsidies available to 230,000, Kao said.
The bureau’s Web site crashed earlier this month after hundreds of thousands of people tried to access it to apply for the rebates.
The government is scheduled to complete an assessment later this week before deciding whether to increase the number of subsidies even further, he said.
A measure aimed at encouraging mobile phone users to upgrade from 2G to 4G networks by providing a NT$2,000 subsidy to purchase a 4G smartphone and a monthly subsidy of NT$200 for up to three months to help cover their phone bills has had only limited effects, Kao said.
Nevertheless, the Ministry of Economic Affairs would redouble its efforts to reach the goal of turning off 2G networks by 2017, he said.
In addition, according to dealers, a NT$2,000 per person subsidy for the purchase of energy-efficient air conditioners, refrigerators, television sets and water heaters has led to a 20 to 30 percent increase in sales of these appliances, Kao said.
However, the Taiwan Institute of Economic Research earlier this month cut its forecast for GDP growth this year from July’s projection of 3.11 percent to 0.83 percent, citing a decline in private consumption, plunging exports and the global economic slowdown.
The Taipei-based think tank said a survey had shown that the expected benefits from cheaper crude prices failed to materialize in light of lackluster retail sales. Instead consumers and companies were postponing spending in expectation of price drops.
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