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Thailand to fund $13.8 billion stimulus scheme with 2024, 2025 budgets, official says

July 15, 2024
in General
Thailand to fund $13.8 billion stimulus scheme with 2024, 2025 budgets, official says
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BANGKOK (Reuters) -Thailand will finance a 500 billion baht ($13.8 billion) household handout scheme with the 2024 and 2025 budgets, a deputy finance minister said on Monday.

The government has not reduced the size of the stimulus programme but it is expected to use about 450 billion baht, Julapun Amornvivat told reporters, adding the funding was approved by a committee meeting chaired by the prime minister.

“The meeting approved the source of funds… from the 2024 and 2025 budgets, which will be sufficient,” he said.

The funding plan is expected to be submitted to the cabinet next week before an announcement of full details on July 24, he added.The government previously said it would finance the policy with the 2024 and 2025 budgets and with capital from the state-owned Bank for Agriculture and Agricultural Cooperatives.

The scheme, which would see about 50 million Thais receive 10,000 baht each to spend locally within six months, is slated to start in the fourth quarter but the government has struggled to find sources of funding.

© Reuters. FILE PHOTO: A view of traffic during sunrise in Bangkok, Thailand, January 5, 2024. REUTERS/Athit Perawongmetha/File Photo

The plan was put forward by the ruling Pheu Thai Party as its flagship policy in the 2023 election. Economists and two former central bank governors have criticised it as fiscally irresponsible.

($1=36.19 baht)

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