• Mon. May 27th, 2024

Thai Government Looks to Boost Economy with 500 Billion Baht Handout Scheme

BySamantha Jones

Mar 27, 2024
Thai Prime Minister considers funding options to boost economy with $13.7 billion handout plan

The Thai Prime Minister Srettha Thavisin announced on Wednesday that the economy was facing challenges and required a boost from a proposed 500 billion baht ($13.7 billion) handout scheme. This scheme, known as the “digital wallet,” involved transferring 10,000 baht ($275) to 50 million Thais to be spent within six months. Despite the benefits of this scheme, concerns about its funding have been raised, with some experts calling it fiscally irresponsible.

The government had initially aimed to distribute the funds by May but now anticipates doing so in the fourth quarter of the year. Srettha stated that the finance ministry and Budget Bureau were exploring different funding options for the scheme, including the possibility of a borrowing bill. He emphasized the importance of boosting the economy, especially given the low growth rates experienced over the past decade.

In 2023, the Thai economy unexpectedly contracted in the final quarter, leading to a full-year growth rate of 1.9%, lower than the 2.5% growth seen in 2022. The state planning agency has revised its 2024 growth forecast to between 2.2% and 3.2%. Discussions about funding sources for the handout scheme will be held at an upcoming meeting on April 10th, where details will be finalized.

One potential option for financing this scheme is through a borrowing bill, which would require approval from parliamentary houses before it can be implemented. While there are differing opinions about whether this would be fiscally responsible or not, both Srettha and central bank governor agree that urgent measures are needed to stimulate economic growth.

The handout scheme is intended to provide support to individuals who may be struggling financially due to economic challenges such as job losses or reduced income levels. However, concerns have been raised about how sustainable such large-scale spending will be in the long run.

Despite these concerns, many experts believe that some form of financial assistance is necessary in order to help people get back on their feet and support economic recovery efforts.

Ultimately, only time will tell whether this new strategy will prove effective in boosting economic growth and improving overall financial stability in Thailand.

Overall, while there may be doubts about whether financing such a large-scale handout scheme through borrowing bills is fiscally responsible or not; it seems like it’s necessary for Thailand’s economy to recover after experiencing low growth rates over

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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