Thailand Government to Provide Financial Stimulus to Boost Economy

The Thai government has announced plans to stimulate its economy by providing financial support to its citizens. Under this new program, approximately 50 million people will receive a cash injection of 7 million VND (Vietnamese Dong) each by the end of this year.

Adjusting Budget for Economic Support

The Thai government is considering adjusting its budget for 2025 to incorporate a support program worth 500 billion baht (approximately 13.71 billion USD). This move aims to address the ongoing challenges faced by the economy. Julapun Amornvivat, the Deputy Finance Minister, expressed optimism about this support program, which has been repeatedly delayed in the past. However, he did not provide any further details regarding the specifics of the program.

Assistance for the People

According to the proposed support program, the government plans to transfer 10,000 baht (approximately 6.8 million VND) to each individual’s electronic wallet for discretionary spending. This program is anticipated to benefit around 50 million Thai citizens.

Delayed Implementation and Criticisms

The Thai government initially intended to distribute the funds in the fourth quarter of this year. However, due to significant differences of opinion, the implementation has been delayed. Some experts have criticized this program, labeling it as financially irresponsible.

Further Discussions and Budget Planning

Prime Minister Srettha Thavisin stated that discussions regarding the funding for this program will take place during the next meeting on April 10th. The specific details of the plan will be finalized during this session. The budget for the fiscal year 2025 is currently planned at 3.6 trillion baht, with a deficit of 713 billion baht.

Prime Minister Srettha informed that the Ministry of Finance and the Budget Bureau are exploring feasible sources of funding for this program. He emphasized the need to boost the country’s slow economic growth, which has persisted for the past decade.

Economic Challenges and Revised Growth Projections

The Thai economy contracted in the final quarter of 2023, with a full-year growth rate of 1.9% in 2022, lower than the 2.5% recorded in 2022. The growth projections for 2024 have been revised downward to a range of 2.2% to 3.2%, compared to the previously expected range of 2.7% to 3.7%.

This article was originally published on Business Today.