Growth Allowance Criticized as Pork-Barrel Spending; Executive Yuan Cites Strategic Investment and Fiscal Discipline

President Lai Ching-te has proposed a growth allowance of NT$5,000 per person per month for individuals aged 0 to 18. In response to external questions壓力 of whether this is a form of pork-barrel spending for this year's elections, Executive Yuan spokesperson Li Hui-chih stated that promoting population policy is not a short-term cash handout but the most important strategic investment in the nation's future, and that it will take into account fiscal discipline, intergenerational equity, and sustainable development.

President Lai announced the "New Strategy for Taiwan's Population" in his second-anniversary-of-governance address yesterday. To address the problem of a declining birthrate, the government has decided to provide a growth allowance of NT$5,000 per person per month for those aged 0 to 18, with an estimated annual budget of around NT$200 billion. The Ministry of Health and Welfare said that for children aged 0 to 2, who currently receive a parenting allowance starting at NT$5,000, an additional NT$5,000 cash growth allowance will bring the total to at least NT$10,000. For those aged 6 to 18, half will be saved in a future fund and half will be disbursed as cash.

Regarding the details and financial planning of the new population strategy, Li Hui-chih said at a press conference after the Executive Yuan's meeting today that President Lai's announcement reflects a comprehensive consideration of the changes in the national population structure. The government will continue to study the relevant content thoroughly and provide explanations at the appropriate time. Details on family support and the budget size will be reported to the public as early as next week, and the government hopes for the support of the Legislative Yuan.

Regarding the plan for those aged 6 to 18 to have half the allowance saved in a future fund and half disbursed as cash, Li stated that this considers that children will enter compulsory education after age 6, but families will still have daily expenses. Therefore, the hope is that half can be used for daily expenses, while parents can save the other half to provide their children with a nest egg when they become adults. The specifics of whether this is mandatory or how accounts will be set up will be fully reported next week.

The media inquired whether this policy is a pork-barrel measure by the DPP government for the year-end elections, and whether the Executive Yuan is simply matching and raising a proposal by the KMT legislative caucus, which just on the 18th proposed a NT$5,000 monthly childcare subsidy for ages 0 to 15.

Li Hui-chih stated that the declining birthrate is a global trend, with fertility rates continuing to fall in most European and American countries. Therefore, Taiwan's new population strategy is the result of very long-term planning and consolidation, creating a complete support package from birth and parenting to education for ages 0 to 18. It will also undergo a comprehensive and complete financial assessment, taking into account fiscal discipline, intergenerational equity, and national sustainable development.

Li emphasized that the growth allowance for ages 0 to 18 is just one of several measures. Others include childcare support, educational assistance, and family-friendly workplace measures. The goal is to reduce the burden on families, encouraging young people to have children and raise them with greater peace of mind.

Regarding public concern about funding, Li said the government will plan appropriately under the premise of ensuring the nation's fiscal sustainability. She added that thanks to the collective efforts of the entire nation in recent years, Taiwan's economic performance has been outstanding. The fruits of this economy should not only be shared by all but also invested in the next generation. Promoting population policy is not a short-term cash handout but the most important strategic investment in the nation's future, hoping to care for children while also reducing the pressure on parents and caregivers.