The government is planning to inject Bt20 billion into the economy amid signs of economic slowdown and political uncertainty after last month’s election.
The government needs to shore up the economy over the next few months as economic indicators suggested an economic slowdown, Deputy Prime Minister Somkid Jatusripitak said on Friday, after meeting with senior officials at the Finance Ministry.
He defended the outgoing government taking the action after the recent election, arguing that the money is not going to a large project and that it was necessary to shore up the economy before the next government takes office.
The stimulus package will be designed to boost consumption and tourism, while creating incentives for residential loans and supporting lower income people who hold state welfare cards, Somkid said. The package is expected to be sent for the Cabinet approval within two weeks, he added.
Meanwhile, Finance Minister Apisak Tantivorawong affirmed the Bt20 billion package. To boost consumption, consumers would get a tax reduction for spending on educational materials, domestic travel and for low-income people to purchase homes, he said. The tax reduction would be about 1.5 to two times the actual spending, he added.