Govt injecting Bt370 bn to achieve 3% growth
The Council of Economic Ministers approved an ambitious Bt370-billion stimulus package on August 16 with the aim of achieving a 3-per-cent economic growth in the second half of this year.
After the Cabinet meeting, Finance Minister Uttama Savanayana released the government’s long-anticipated stimulus plan at a press conference, explaining that the aim was to inject Bt370 billion in the economy to boost domestic spending and investment.
The package will be broken down into two categories: Bt100 billion will be earmarked for direct government spending, while Bt270 billion will come in the form of loans from state-run banks.
These plans will have to be proposed at the official Cabinet meeting before they can be implemented, the minister said.
In order to boost domestic spending, the government plans to introduce a new round of welfare benefits in August and September for state-welfare card holders, he said. Up to Bt20 billion has been put aside for this scheme, which will also include three major giveaways.
The first freebie is a Bt500 giveaway to all welfare card holders for two consecutive months. The aim for this is to reduce the cost of living and stimulate the Kingdom’s grassroots economy. The total budget for this measure stands at Bt14.6 billion and will reach about 14.6 million people, Uttama said.
The second freebie will target people above the age of 60, who will be given an additional Bt500 for two consecutive months. Around 5 million people will benefit from this policy and the required budget for this measure is Bt5 billion.
Finally, welfare card holders who are helping raise children aged between 0 and 6 will be given Bt300 for two consecutive months. This measure will benefit approximately 800,000 people and will require a budget of Bt500 million.
After these extra measures have been completed, welfare card holders will go back to receiving the usual Bt200 to Bt300 subsidy for cost of living, Bt500 for the elderly and Bt300 for child care from October onwards.
In a move to provide support to farmers affected by the drought, the interest on loans from the Bank for Agriculture and Agricultural Cooperatives will be reduced and the debt-repayment period extended from August onwards.
Low-interest loans will also be provided for small and medium-sized enterprises (SMEs) and new measures will be taken to promote tourism within the country from October onwards.
Uttama said the government is confident that these measures will provide a buffer for the economy and will help achieve a 3 per cent growth in the second half of this year.
