Somkid to speed up stimulus measures

IN A BID to revitalise the sagging economy, economic agencies under the jurisdiction of Deputy Prime Minister Somkid Jatusripitak will fast-track Cabinet approval for a series of urgent measures, including topping up the Village Fund scheme, offering soft loans to small and medium enterprises, and small-scale rural development projects.

Meanwhile, Transport Minister Akom Termpitayapaisit pledged to accelerate implementation of 17 mega-infrastructure schemes worth a combined Bt1.66 trillion, while Information and Communications Technology Minister Uttama Savanayana said he would push ahead with the digital economy policy laid out by his predecessor.

According to Finance Minister Apisak Tantivorawong, the new economic stimulus package is aimed at helping the grassroots population who have been hit hard by the sluggish economy and low farm prices.

Apisak said the first phase of the stimulus package will be funded by the government’s central budget, while low-interest loans will be offered via state banks in connection with the job creation measures of the Finance Ministry and the Interior Ministry to boost the purchasing power of low-income earners within the next 3-4 months. 

The second phase of the stimulus package will begin after the first phase of the package is implemented. 

The second phase includes new incentives to encourage domestic and foreign investors to invest, and measures to enforce companies to have only one account and encourage the use of e-payment tools to reduce tax loopholes.

“The disbursement to increase the Village Fund should be done in one month after it is approved by the Cabinet, while the disbursement for small projects is expected to take around 3-4 months, so we are confident that these measures will improve living conditions in rural areas and help improve the grassroots economy within the timeframe,” Somkid said following the first Finance Ministry meeting.

“These measures will also help people who are in dire need, such as low-income earners and SMEs, so we are confident since we are fixing the problem where it needs to be fixed,” he said.

The Village Fund expansion will help not only farmers, but other low-income earner groups as well, he said.

The money will be spent quickly and there will be a high multiplier effect on the overall economy, he noted.

According to Apisak, if the e-payment and single account policies can be fully implemented, the government can expect more tax revenue so there is less pressure to consider other tax hikes.

However, he said his predecessor’s proposed land and building tax bill will also go ahead but details will be reviewed by the new Council of Economic Ministers.

Akom said the government would invite bids to build the Pattaya-Mab Ta Put motorway and six double-railroad routes by the end of this year, while seeking Cabinet approval for several mass transit electric train schemes in Bangkok and suburbs.

Altogether, the projects account for a combined investment of Bt1.66 trillion.

The implementation of mega-infrastructure projects will contribute significantly to the country’s GDP growth at a time when the export sector, which accounts for as much as 70 per cent of GDP, is not doing well due to the global economic slowdown.

Akom said the Transport Ministry would also focus on tackling the aviation safety issue raised by the International Civil Aviation Organisation, which earlier |red-flagged Thailand due to safety concerns.

 Meanwhile, Uttama said the government’s digital-economy policy would go ahead as planned and all nine draft laws related to the policy would be enacted, even though some tasks of the subcommittees of the ad hoc National Digital Economy Committee might be reviewed.

The new ICT minister also ordered ICT state agencies to launch initiatives that would serve the public. The ministry oversees eight agencies: TOT, CAT, Thailand Post, the Meteorology Department, the National Statistical Office, the Software Industry Promotion Agency, the Electronic Transactions Development Agency and the Electronic Government Agency.