• Thu. Jun 13th, 2024

Boosting Thailand’s Economy: The Thai Government’s Handout Scheme and the Path Forward

BySamantha Johnson

Mar 27, 2024
Thai Prime Minister considers funding options for $13.7 billion stimulus package to bolster economy

The Thai Prime Minister, Srettha Thavisin, has announced that the economy is facing challenges and needs a boost from a proposed handout scheme worth 500 billion baht ($13.7 billion). The “digital wallet” plan involves transferring 10,000 baht ($275) to 50 million Thais to be spent within six months. However, concerns have been raised about the funding for this scheme and its fiscal responsibility.

In response to these concerns, the government has decided to delay the distribution of funds until the fourth quarter of the year. Srettha revealed that the finance ministry and Budget Bureau are currently exploring potential funding sources for the scheme, as well as considering a borrowing bill. He emphasized the importance of boosting the economy, which has experienced low growth over the past decade.

The state planning agency has also revised its 2024 growth outlook due to unexpected contraction in the final quarter of 2023 and full-year growth at only 1.9%, below the previous estimate of 2.5% in 2022. The new projection ranges from 2.2% to 3.2%, down from the previous estimate of 2.7% to 3.7%. Despite this setback, the government plans to discuss the funding source for the scheme at its next meeting on April 10, where further details will be finalized.

While approving budgets for fiscal years is not without challenges, obtaining a borrowing bill for financing handout programs is another obstacle altogether for Thai authorities looking to stimulate their struggling economy with cash infusions during times of crisis.

Srettha has labeled this current economic situation as a crisis that requires urgent stimulus measures, but central bank governor acknowledges slower-than-expected growth and structural issues in their economy.

The government’s decision to delay distributing funds until Q4 raises questions about how long it will take before they can finally inject cash into an economy that needs it desperately.

Despite these challenges, Srettha remains committed to finding a way forward and ensuring that his country’s economy continues to grow despite these setbacks.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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