Cabinet approved 316 billion baht economic stimulus plan
20-8-2020— After the Cabinet meeting, Mr. Uttama Saonayon, Minister of Finance, revealed that the Cabinet today approved stimulus measures worth 316 billion baht.
After this, will push relevant agencies to speed up the process, including clarification for people understand. The Fiscal Policy Office expects all measures to be able to stimulate 0.5-0.6% GDP for Thai entire economy.
As for the economic stimulus measures, there is a goal to alleviate three parts, including the cost of living, the economic slowdown and the drought as follow;
1.Increase subsistence allowance for low income people holding a state welfare card to receive an additional 500 baht per month. Increase the subsistence allowance for the elderly who hold a state welfare card 500 baht per month and increase 300 baht per month for the child support allowance of the state welfare card holders.
- Small-scale farmers and farmers who suffer from drought will receive the reduced interest rates on special loans to help the drought effects support by the Bank for Agriculture and Agricultural Cooperatives (BAAC), as well as to suspend the payback period for the customers faced the difficulty from drought. The government will also provide them the 500 baht per rai for the cost of rice planting, not over 20 rai, during the production year 2019/2020,
However, this measure covers more than 9 hundred thousand farmers. The BAAC will release a loan of not more than 300,000 baht for each, during 1Aug 2019-31 Sep 2020,
with special low interest rate at 0.1% and extend the grace period for two years till 2021, including a one year suspension for the Village Fund which owe the lone from the Government Savings Bank and the Bank for Agriculture and Cooperatives,in order for the fund able to provide more loans.
- Stimulating domestic consumption and investment In the tourism sector, there is a measure through shopping, spending by giving 1,000 baht to each Thai people aged 18 years and over. Who register to receive money through G-Wallet will give 1,000 baht each on first come first serve basis to spend for travel, eating and shopping in the provinces outside the area specified in their ID card. It will use the budget of the year 2019/2020 for a total of 15-20 billion baht. Registration will be open during 23 Sep-15 Nov 2019.
The public sector has received 1.5 times tax deduction from capital expenditures, increasing the amount of funds through the Fund of the Office of Small and Medium Enterprise Promotion (OSMEP) by the Small and Medium Enterprise Development Bank (SME Bank) managing the fund. Including 10 billion baht credit line and credit guarantee for small and medium enterprises of the Small Industry Credit Guarantee Corporation at amount of 150 billion baht, loans through Krung Thai Bank and the Government Savings Bank, at the limit of 100 billion baht in total and low interest rate housing loans totaling 52 billion baht.
