Next week, the government will formally approve the first-phase submission to 14.5 million needy people.
As her government promised more stimulus measures in the coming weeks, the launch of a 145-billion-baht handout program to the poor people is certain to bring a” jolt” to the market, according to Prime Minister Paetongtarn Shinawatra on Tuesday.
Starting on September 25, the government on Tuesday officially approved the supply of 145 billion baht, or roughly one-third of the total planned under the initial “digital bag” system.
The first to benefit from the lauded trigger effort will be low-income individuals and vulnerable groups, which only increased by 1.9 % next year, far below peers ‘ growth rates.
According to Finance Minister Pichai Chunhavajira, 12.4 million people with state security cards and 2.15 million people with disabilities will be among the beneficiaries, according to a lecture following the case meeting.
Less than 40 million Thais over time 16 are then expected to sign up to receive payment of 10, 000 baht each, generally via a device program, to be spent within six weeks in their communities. That is over from 45-50 million estimated before.
Prime Minister Paetongtarn Shinawatra arrives at Government House on Tuesday to lead her second case meet. ( Photo: Chanat Katanyu )
About 14.5 million people will receive payment next year, directly to their bank transactions via PromptPay, according to the Ministry of Finance.
According to what we discovered, the initial prone group receiving 10,000 baht has a high spending rate, which will undoubtedly cause the economy to sag,” Ms. Paetongtarn told reporters.
The initial treatment will increase economic progress by 0.35 percent points, said Pornchai Thiraveja, mind of the Fiscal Policy Office.
The Pheu Thai Party’s flagship policy is the one that is opposed to the coalition’s leadership, which is trying to revive an export-stucking economy that is stifled by great household debt, poor spending, and a slow recovery in exports.
The Bank of Thailand anticipates a 2.6 % annual growth in the economy this year.
The modern component of the flyer, according to deputy finance secretary Julapun Amornvivat, will continue as it is a result of the government’s plan to establish a modern economy, which would include a blockchain-backed payment system.
According to Mr. Pichai, the second phase of the grant is already being reviewed, and additional stimulus measures will be introduced in the future.
Ms. Paetongtarn, who took office earlier this month, faces the difficult task of stifling growth in an economy that is stifled by near-record home loan, an flow of cheap goods from China, and subpar imports.
Mr. Pichai stated that the 122-billion-baht supplementary resources and a portion of the annual expenditure for the 2024 fiscal year ending on September 30 will be used to finance the handout.  ,
The government plans to increase borrowing by 8 % to about 2.6 trillion baht for the 2025 governmental time starting on October 1, according to relevant information, market options, and a government display seen by Reuters.
According to the options, who declined to be identified because the data was not made public, 1.06 trillion baht may be new loans and 1.53 trillion will be loan being rolled around.
In the 2025 fiscal year, the government intends to sell about 1.25 trillion baht of government bonds and 520 billion baht of Treasury bills, which will provide more than two-thirds of the target amount of borrowing, according to sources.