The above information was announced by Thai Prime Minister Shretha Thawisin on September 11. Mr. Shrestha considers reviving the sluggish economy as the top priority of the government.
According to the news agency bloombergAll Thai residents aged 16 and over will receive 10,000 baht per person for purchasing specific goods and services within a certain period.
Expected to be implemented in the first quarter of 2024, this scheme to distribute funds through e-wallets is one of the commitments of Sri Shretha Thavisin’s Phu Thai Party in the last election campaign.
Thai officials say the impact on the economy could be four times the amount distributed and could help boost economic growth next year by 5% (from an expected 2.8% this year).
Thai Prime Minister Shretha Thawisin speaks before parliament in Bangkok on 11 September. Photo: Reuters
However, economists at Bank of America (USA) and Nomura Holdings Financial Company (Japan) believe that such spending plans increase the fiscal deficit, limiting the ability to absorb economic impacts. Thailand’s future economic shock.
Several measures proposed by the Prime Minister in Parliament are likely to be approved at the first meeting of the Thai Cabinet on September 13.
Prime Minister and Finance Minister Shretha Thavisin faces the challenge of boosting growth in the context of declining demand for goods from top trading partner China and lower-than-expected revenues from international tourists.
Thailand’s 11-party coalition government also fears rising inflation as drought threatens to reduce yields of crops such as rice and sugarcane. The Thai Prime Minister also has to deal with domestic debt at 90% of gross domestic product (GDP) and public debt at 61% of GDP.
According to Prime Minister Sritha, the money will be distributed equally across all economic sectors. Additionally, the government will soon reduce energy prices and restructure loans for farmers and small businesses.
