The Cabinet yesterday approved a NT$410 billion (US$12.6 billion) special budget to enhance national security and boost economic resilience against the effects of US tariffs.
Based on the Cabinet’s proposal, it would earmark an additional NT$5 billion on top of the NT$88 billion package it approved earlier this month to help local businesses tackle the effects of US tariffs on industrial and agricultural sectors, and to stimulate the economy.
About NT$100 billion of the special budget would be earmarked for Taiwan Power Co (Taipower, 台電), Premier Cho Jung-tai (卓榮泰) told a news conference yesterday.
It represents the latest efforts by the government to lend a hand to the state-owned utility company, after legislators failed to endorse a NT$100 billion capital injection plan for Taipower.
Taipower is under mounting pressure to raise electricity rates to address massive losses of NT$420 billion accumulated through the end of last year.
The new funding would help stabilize the nation’s consumer prices, and shield Taiwanese industries and the broader economy from the potential effects of global economic shocks, Cho said.
Photo: CNA
In addition, about NT$150 billion of the special budget would be earmarked to bolster Taiwan’s national security, such as strengthening coast guard operations, developing uncrewed aerial vehicle infrastructure, and upgrading information and communications systems and facilities, Cabinet spokeswoman Michelle Lee (李慧芝) said.
About NT$167 billion would go toward financing social safety net programs, the Cabinet added.
It said it plans to use the government’s fiscal surplus to fund the special budget, although the proposed bill would allow for borrowing if necessary.
As the government has accumulated NT$358.9 billion in fiscal surplus over eight years as of last year, it does not plan to raise new debt, Cho said.
The budget is subject to the legislature’s approval.
The special budget would allow the Cabinet to allocate NT$410 billion in addition to its annual general budgets over the 33 months to the end of 2027 from March 12, the Cabinet said.
Even after the legislature approves the bill, the Cabinet would have to propose special budget plans and obtain the legislature’s permission to use the NT$410 billion.
The special budget would help push GDP growth to 2.9 percent or higher this year, based on an IMF estimate, Executive Yuan Secretary-General Kung Ming-hsin (龔明鑫) said.
Taiwan’s economy is facing major risks amid global financial uncertainty and GDP could grow less than 2 percent year-on-year this year.
Multiple think tanks have slashed their growth forecast by 0.4 percentage points to 1.5 percentage points due to the US’ 32 percent “reciprocal” tariffs announced on imports from Taiwan, despite a 90-day pause.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
North Korea yesterday fired about 10 ballistic missiles to the sea toward Japan, the South Korean Joint Chiefs of Staff (JCS) said, days after Pyongyang warned of “terrible consequences” over ongoing South Korea-US military drills. Pyongyang recently dashed hopes of a diplomatic thaw with Seoul, Washington’s security ally, describing its latest peace efforts as a “clumsy, deceptive farce.” Seoul’s military detected “around 10 ballistic missiles launched from the Sunan area in North Korea toward the East Sea [Sea of Japan] at around 1:20pm,” JCS said in a statement, referring to South Korea’s name for the body of water. The missiles
North Korea tested nuclear-capable rocket launchers, state media reported yesterday, a day after Seoul detected the launch of about 10 ballistic missiles. The test comes after South Korean and US forces launched their springtime military drills, due to run until Thursday. North Korean leader Kim Jong-un on Saturday oversaw the testing of the multiple rocket launcher system (MRLS), the Korean Central News Agency (KCNA) said. The test involved 12 600mm-caliber ultra-precision multiple rocket launchers and two artillery companies, it said. Kim said the drill gave Pyongyang’s enemies, within the 420km striking range, a sense of “uneasiness” and “a deep understanding
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
RSS