Estimates from the Directorate General of Budget, Accounting and Statistics (DGBAS) indicate that private consumption in the second fiscal quarter grew by only 0.56%, or almost zero growth. Scholars believe the NT$10,000 (US$310) universal cash handout recently approved by the Cabinet as part of a special budget could boost domestic consumption momentum in the fourth fiscal quarter or next year.

Per the DGBAS, private consumption fell short of expectations due to a significant decrease in automobile and motorcycle deliveries and a decline in stock market trading volume. National Central University Economics Professor Hsu Chih-chiang (徐之強) explained that the second quarter also saw declines in the retail, restaurant, and domestic tourism markets. Although Taiwan’s stock market trading volume rebounded in August compared to the same period last year, the decline in trading volume from January through July exceeded 10%. Hsu is hopeful that the handout will increase domestic spending in the coming months. 

The Finance Ministry has indicated that the universal cash handout will be distributed within a month after the special budget receives final approval. Similar to the NT$6,000 (US$200) disbursements in 2023, any citizen with a household registration in Taiwan, non-residents with residence permits, foreigners with permanent residence permits, spouses of Taiwanese nationals, and government personnel stationed abroad will be able to obtain the handouts.