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VI. Anticipated Benefits
A. Intangible benefits
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Increase the capital value of human resources: Cultivate talent for future development and build an even more solid human resources foundation for the development of a knowledge-based economy
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Raise the commodity value of the environment: The construction of an extensive wastewater treatment system will improve the quality of the environment, protect river and marine resources, and increase environmental benefits. The TRA Rapid Transit Plan will help ease population growth in urban areas and achieve balanced urban and rural development.
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Create cultural values: Introduce and foster international cultures locally in Taiwan and promote Taiwan’s cultures in the international community to give impetus to the artistic and cultural creativity industries, deepen appreciation for culture and the arts among the people, and expand the public’s international horizons
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Enrich the lives of the people: Solve transportation and water resources problems as well as reduce time spent in traffic and increase time available for leisure and recreation, which will also benefit the development of the tourism industry and foster values of leisure and recreation among the people at the same time. In addition, the Mobile Taiwan Plan will carry the people of Taiwan into the new digital world, enriching their lives and values, and promoting the development of cultural industries in Taiwan.
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Encourage technological progress:
Increased public investment will help motivate technological improvements and increase productivity. The Top-notch Universities and Research Centers Plan, the Mobile Taiwan Plan and other programs are sources of such technological advancements.
B.
Measurable benefits
1. Promote economic growth
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The major impact of public investment on the economy is to encourage private-sector investment, which in turn will promote private-sector consumption and increase imports. These benefits will multiply and propel the economy toward steady growth.
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Throughout the five years of the projects, real GDP will receive an annual boost of
1 percentage to 1.4 percentage points.
2. Drive private-sector demand
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Investment in public infrastructure typically has a positive external effect on economies of scale and the Internet economy. The more advanced and well-developed is public infrastructure, the better the external environment for industrial development that will create additional demand in the private sector.
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Real private demand will be raised by
0.6 percentage to 0.8 percentage points annually.
3. Increase employment opportunities
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Increase the density of employment in Taiwan’s overall economy and promote new opportunities for job creation.
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An average of 64,000 jobs will be created every year.
4. Ease deflationary pressure
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Deflation poses an imminent threat to the domestic economy. Should the prices of goods continue to fall, the impact on the overall economy would be even more serious than that of inflation. During this period of price stagnation, the government will take timely action to promote an active and forward-looking relaxation of fiscal policy to spur domestic demand and lessen the negative effects of deflation.
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Prices of consumer goods will rise by an extra
0.2 percentage points every year.
5. Expand the tax contribution
  
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Republic of China
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