Tuesday, April 16, 2024

Thailand’s $14 billion cash stimulus plan postponed to Q4

Thailand plans to implement a $14 billion cash handout program in the final quarter of the year to stimulate economic growth, providing 10,000 baht to 50 million adult Thais.

Thailand’s $14 Billion Cash Handout Program

Thailand plans to implement a $14 billion cash handout program in the final quarter of this year to stimulate growth in the economy. The program will provide 10,000 baht to 50 million adult Thais, excluding high-income earners and affluent individuals. The funding will come from a one-time borrowing, and the cabinet is expected to approve the program by the end of April.

Rationale and Concerns

The Thai economy has been struggling, with shrinking factory output and weak business sentiment. The prime minister has been urging the central bank to cut interest rates to address the economic challenges. Critics argue that the money would be better spent as direct public expenditure and investment, and that the government should narrow down the beneficiaries or limit the handout to those in need. Thailand’s former central bank governors and economic experts fear that the program could lead to inflation and harm long-term fiscal discipline.

Economic Recovery and Criticisms

Thailand plans to implement a $14 billion large-scale cash handout program in the final quarter of this year to stimulate economic growth, following the COVID-19 pandemic. The initiative aims to provide financial relief to individuals and businesses, boost consumer spending and investment, and support economic recovery. While the program is a key promise of the Prime Minister’s party, critics argue that the money would be better spent on direct public expenditure and investment, rather than a widespread cash handout.

Source : Thailand’s $14 billion cash stimulus plan postponed to Q4

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