FTI chairman expects GDP growth near 3% on stimulus

The military-led government last month introduced measures to help low-income earners via the injection of Bt60 billion into the Village Fund programme, job creation via small government projects worth Bt40 billion, and a cash handout programme to fund local projects in more than 7,200 tambon worth Bt38 billion.

These measures were followed by programmes to support small and medium-sized enterprises: a Bt100-billion policy-loan scheme offers 4-per-cent interest rates, an increase of the Thai Credit Guarantee Corporation’s budget for SMEs by Bt100 billion, a state-banks venture capital fund worth Bt6 billion, a two-year cut in SMEs’ income-tax rates, and a five-year income-tax exemption for start-ups that fit the government’s criteria.

 

Bt128 billion in Q4

Somsak Chotrattanasiri, director of the Budget Bureau, said after the Cabinet meeting on Tuesday that he expected the government to be able to disburse around Bt128 billion this quarter to support the economic stimulus measures.

FTI chairman Supant Mongkolsuthree said: “There are both stimulus and investment budgets worth around Bt200 billion that will enter the economy in the last quarter of this year. If the government is able to implement its economic plans and stimulus efforts, then I am confident that the result will be tangible in the last quarter and even more fruitful next year.” 

Supant made the remark after representatives of the private sector met with Prime Minister General Prayut Chan-o-cha at Government House yesterday.

“We have talked with representatives of the tourism sector and they say European visitors are starting to come back, which has lessened our concerns. The money that is expected to be invested and disbursed by the government in the last quarter should be able to keep GDP from declining any further.”