Stimulus plan in the works

The Finance Ministry will on Tuesday present a comprehensive economic stimulus package to a related committee chaired by Prime Minister Paetongtarn Shinawatra for consideration, said Deputy Finance Minister Julapun Amornvivat.
Mr Julapun said the ministry’s package, which is expected to include the 10,000-baht cash handout via the digital wallet, aims to generate activity to support a full-year of economic growth next year.
He described it as a New Year’s gift for the Thai people.
He said tax measures and debt-solving programmes are part of the ministry’s proposal, adding the government wants to give debtors a lifeline and increase people’s access to financial assistance through soft loans and interest rate reductions.
However, Mr Julapun declined to provide the details of these stimulus initiatives because some measures have not been finalised and needed further discussion.
He noted that other ministries will also present stimulus packages to the economic stimulus policy committee, which will establish a clear direction for economic growth and determine the best timing and implementation strategy for each proposal.
The deputy finance minister said the industry-target stimulus measures are also highly likely to be adopted.
Mr Julapun said while the government expects strong economic growth in the last quarter of this year, certain sectors still need assistance, including lending services for pickup trucks and property.
The cabinet recently approved a loan programme worth 55 billion baht for purchasing, building or repairing/decorating homes with low interest rates, he said.
But he noted that the government has yet to decide whether it will extend the transfer fee reduction, which is set to expire at the end of this year.
He said the new loan scheme will replace the Happy Home Housing Loan Project and the Happy Life Loan Project, which generated robust responses from consumers.
According to Mr Julapun, the budget to fund the economic stimulus initiatives will come from diverse sources rather than the annual budget alone, and 180 billion baht has been set aside for the digital wallet scheme.
Meanwhile, the government is targeting the elderly for the second phase of the digital wallet scheme.
Finance Minister Pichai Chunhavajira said the elderly are a vulnerable group with limited employment opportunities compared with other groups, but the target group may be extended to include individuals aged 50 and over.
He said the elderly population is also relatively small, requiring a smaller budget allocation and management.
Last week, Deputy Finance Minister Paopoom Rojanasakul said the age range is being considered as the preliminary criteria for the next phase of the 10,000 baht digital wallet programme.
Mr Paopoom said fewer people are likely to qualify for this payment than in the first phase of the cash handout, and the payment may be made either at the end of this year or early next year.
It is reported that the Finance Ministry’s package is expected to be a comprehensive plan covering short-term, medium-term and long-term measures and New Year’s gifts.
The ministry assessed the cash handout’s first phase to vulnerable groups, which stimulated the economy, particularly during the fourth quarter, when GDP is expected to grow by 4.3-4.4%.