When calling for support from the KMT’s legislative caucus to quickly ratify the budget plan, Liu said that amid a severe global economic slowdown, the government has worked out the new stimulus package that includes a shopping voucher program, the launch of public construction projects, urban renewal plans, and incentives to encourage private investment and industrial upgrading, with an aim to prop up Taiwan’s economy.

With these new measures, the government aims to increase Taiwan’s economic growth rate by 1.64 percentage points for 2009, Liu said.

“The government must take swift action to tackle the challenges that are arising at this uncertain time,” he added.

Taiwan is estimated to post a 2.12 percent economic growth rate next year, which would put it on par with Hong Kong and ahead of Singapore and South Korea.

But Taiwan’s economy is expected to continue to register negative growth in the fourth quarter of this year and the first quarter of next year, as it has done in the third quarter this year, the premier said.

Commenting on the shopping voucher plan, he said each Taiwanese citizen, regardless of age or income level, is entitled to receive shopping vouchers worth NT$3,600. Each package will be comprised of six vouchers with a face value of NT$500 and three with a face value of NT$200.

The program will require a special budget of some NT$82.9 billion. The vouchers are slated to be distributed to the public on Jan. 17 or Jan. 18.

In the area of public construction, a budget of about NT$75 billion would be allocated in 2009 to carry out the relevant projects, according to Liu.

The budget for the next four years to implement public work projects, such as expanding the existing metro systems, rebuilding dangerous bridges and old classrooms and improving railway and sewage systems, would amount to NT$420 billion, he added.

The Executive Yuan (Cabinet) also plans to spend NT$400 million to renew urban areas across the country, and this injection of funds into the economy is expected to help attract investment of more than NT$20 billion from the private sector, he said.

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