Chinese Nationalist Party (KMT) members across the nation yesterday called on the government to issue cash handouts, not discount coupons, as part of bailout plans to alleviate the effects of COVID-19 on the local economy.
KMT members of 22 municipal councils nationwide convened simultaneous news conferences yesterday morning to make the appeal.
Countries around the world are issuing cash handouts to boost domestic economies, KMT Chairman Johnny Chiang (江啟臣) told a news conference at the Taipei City Council, citing the US, which issued coronavirus stimulus checks on Wednesday.
Photo: Yang Hsin-hui, Taipei Times
The bailout plans outlined by the Executive Yuan are not in line with international practice, so the KMT hopes that the Democratic Progressive Party (DPP) can listen to voices from the grassroots and hand out cash instead, which would fit the real needs of Taiwanese, he said.
The party is open to discussion if the central government wants the KMT to propose a policy on cash handouts, he added.
Asked for comment, President Tsai Ing-wen (蔡英文) said that there are two stages in the government’s handling of the virus’ effects — the “relief stage” and then the “recovery stage” — but many people, including the KMT, are not familiar with the policy instruments suitable for each stage.
Tsai made the remarks on the sidelines of an event in Taipei’s Nangang District (南港), adding that Taiwan is still in the relief stage and that a range of tools can be used for this stage.
For example, the government could introduce measures that let businesses obtain low-interest loans and tax payment deferrals, or subsidize employee salaries hit by the pandemic, she said, adding that it is crucial to spend the money on the right people.
Cash handouts are a fraction of the policy instruments available during this stage and they should be given only to the targeted groups that need the help the most, Tsai said, adding that dishing out money indiscriminately to everybody would be a waste of fiscal resources.
The recovery stage begins when the pandemic slows, the time when a suffering economy needs a push, Tsai said.
The best way to revitalize the economy during this stage is by using discount coupons, a tool that experience has proven to be more effective than cash at stimulating local consumption, she said.
Asked about the IMF’s latest GDP forecast for Taiwan — a downward adjustment from 2 percent to minus-4 percent — Tsai said that the government has kept the nation’s economy performing steadily by employing multiple policy tools, and that many investment projects are continuing to add positive momentum, so it remains to be seen if the IMF’s projection is on target.
Separately yesterday, Tainan City Councilor Chiu Li-li (邱莉莉), leader of the council DPP caucus, said that the KMT could sell its ill-gotten party assets and issue cash handouts to people, or use the gains to buy masks, acting on disease-prevention slogans.
Officials of the Ill-gotten Party Assets Settlement Committee on Wednesday urged the KMT to promptly return NT$76.8 billion (US$2.55 billion) of assets to state ownership, saying that the committee has been waiting since its establishment in 2016, Chiu said.
If the KMT cannot sell the ill-gotten assets more quickly, it should stand behind Tsai and the Executive Yuan, and pass the budget drafts in the legislature, as the last thing Taiwan needs at such a difficult time is more political struggles, she added.
Taiwan is projected to lose a working-age population of about 6.67 million people in two waves of retirement in the coming years, as the nation confronts accelerating demographic decline and a shortage of younger workers to take their place, the Ministry of the Interior said. Taiwan experienced its largest baby boom between 1958 and 1966, when the population grew by 3.78 million, followed by a second surge of 2.89 million between 1976 and 1982, ministry data showed. In 2023, the first of those baby boom generations — those born in the late 1950s and early 1960s — began to enter retirement, triggering
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