Illustrative image (Source: NationThailand)Bangkok (VNA) - The Thai governmentwill this week consider measures to increase the purchasing power of low-incomegroups and support small businesses.
According to Lavaron Sansnit, director-general of theFiscal Policy Office, the Thai Finance Ministry will urge the government’scentre for economic situation administration to approve the latest stimulusmeasures on September 16 or September 17.
Earlier, the government had said that it planned to spend 45 billion THB toboost consumption among grassroots people and support small businesses.
The Finance Ministry is working out details of the shopping stimulus. Thegovernment will support half of the daily consumption spending by low-incomegroups. The measure is expected to be implemented from October to December.
The measure is aimed at supporting daily spending and reducing the cost ofliving. It it is not a one-time spending on big items, he said.
Meanwhile,Anusorn Tamajai, an economist at Rangsit University, suggested that thegovernment target low-income and small businesses, because shopping stimuluspackages in the past had mostly benefited large businesses.
Thegovernment should target the 15 million consumers who hold state welfare cards,he said, adding that each cardholder may receive grants of about 2,500 to 5,000THB cash handout or credit transferred to e-wallet.
If thegovernment spends 45 billion THB, then it would increase transactions in the marketto 180 billion to 270 billion THB, boosting economy growth by 0.3percentage point.
The Bank of Thailand has forecast that the economy will shrink by 8.1 percentthis year due to the impact of COVID-19. More workers are expected to be laidoff if economic recovery is delayed by the threat of a second wave ofinfections./.
VNA
