Cabinet okays ‘gifts’ for low-income earners

These include free use of motorways from the Transport Ministry and a boost from the Finance Ministry in the 4 per cent soft-loan budget for SMEs.
“The New Year will mainly concentrate on fixing the country’s problems, such as encouraging changes in [farmers’] cultivation behaviour to match global demand in order to avoid a mismatch between supply and demand,” spokesman Sansern Kaewkamnerd told reporters after the Cabinet meeting yesterday.
Cabinet approved a proposal by the Transport Ministry for toll-free motorways from midnight on December 25 to midnight on Jan 3 for Bangkok to Ban Chang in Rayong, Bang Phli in Samut Prakan to Bang Pa-in in Ayutthaya and the Burapha Withee expressways.
The Finance Ministry also proposed and gained approval for the increase in the budget for soft loans for SMEs lent by commercial banks, special financial institutions and especially the state owned Government Savings Bank (GSB).
The initial budget for a 4 per cent interest rate loan for SMEs was set at Bt100 billion and most of this – around Bt70 billion – has already been used up by the state bank as the measure was introduced in August and has gained vast interest from SMEs.
So, the Cabinet agreed yesterday to boost the GSB’s budget for the scheme by another Bt50 billion.
Under the soft-loan program, the GSB will lend to commercial banks, which will re-lend the money to SMEs at an interest rate of 4 per cent per annum for seven years to support SMEs’ liquidity needs as the current market interest rate of 7 per cent is seen as too high by small business operators hit by the economic slowdown since early 2014.
Other New Year “gifts” related to helping low income earners to lower their holiday burden included the government asking for malls and department stores’ cooperation so that New Year sales include everyday products.
Prime Minister Prayut Chan-o-cha has also instructed his economic team to talk with suppliers of electronics about extra sales of home appliances.
Other initiatives linked to the New Year involve the service sector and includes events to “lift” human capital, plus social and environment developments.