The Cabinet says that government subsidies that form part of a short-term stimulus package are aimed at boosting consumer spending.
The Cabinet has decided to spend NT$4.1 billion (US$136.6 million) to prop up the sagging economy, with funds coming from the budgets of government agencies.
However, unlike similar subsidies handed out in 2009 when Taiwanese nationals were allotted NT$3,600 (US$110) to spend freely, the NT$2,000 (US$66) vouchers to be given away this time will only be valid for designated items.
In response to complaints that the money to be given away is too little to stimulate spending, Cabinet Spokesman Sun Lih-chyun said Saturday that the government hopes the spending vouchers will have a “multiplier effect.”
Sun also said that the government has increased infrastructure spending in next year’s budget to stimulate the economy.