New measures out to boost economic growth
The Cabinet today (November 26) approved three new stimulus packages to prop up the softening economy, said Finance Minister Uttama Savanayana, adding that the measures aim to support small farmers, SMEs and property developers.
Uttama expects the new measures to generate Bt80 billion to the economic system, which would in turn lift GDP growth to 2.6 per cent this year.
The first package targets grassroot economy under the 2020 fiscal budget.
1.1 The government will allocate Bt14.348 billion to village funds for upgrading the infrastructure of villages, town communities as well as employment promotion. The eligible village funds are graded from A to C, totalling 71,742. Each village fund will get a maximum of Bt200,000.
1.2 The Bank for Agriculture and Agricultural Cooperatives (BAAC) will provide Bt50 billion to village funds, general public, community financial institutes, agricultural co-operatives, community enterprises, and farmers for operation expenses and to be used as revolving fund.
The loan will carry 0.01 per cent interest rate per annum for the first three years. After that it will be subject to BAAC rate. The campaign will run from on December 1, 2019 to November 30, 2022.
1.3 The village funds will grant debt moratorium to members under criteria to be set by the funds respectively.
2. The second package will help farmers reduce harvesting cost and improve rice quality.
Farmers, registered with the Department of Agriculture Extension this year, will be provided with financial aid for harvesting and rice quality improvement at Bt500 per rai or not exceeding Bt10,000 per household. Lands eligible for this programme is limited to not exceeding 20 rai per household.
3. The third package "Good House with down payment" aims to reduce home-purchase costs. The government will offer a cash-back of Bt50,000 per buyer on the down payment.
To be eligible, the buyer must have a monthly salary not exceeding Bt100,000 and included in the Revenue Department's tax database of around 100,000 individuals under this category.
The campaign will start tomorrow (November 27) and end on March 31, 2020.