Thai Cabinet approves more than $7.8b in new borrowing to finance subsidy scheme for consumers
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The government will subsidise 60 per cent of the prices of certain consumer goods, capped at $7.80 per day.
PHOTO: AFP
BANGKOK – Thailand’s Cabinet has approved new borrowing of 200 billion baht (S$7.8 billion) to support a consumer subsidy scheme, Finance Minister Ekniti Nitithanprapas said on May 19, as part of the government’s efforts to alleviate the impact of the Middle East war on the cost of living.
The scheme will cover about 43 million people over four months, the Finance Ministry’s permanent secretary, Mr Lavaron Sangsnit, said at a press conference.
The government will offer 1,000 baht per person per month from June to September. It will also subsidise 60 per cent of the prices of certain consumer goods, capped at 200 baht per day.
The borrowing will not be a one-time loan, but will be done gradually to cover the costs of the subsidy, he said. The 200 billion baht will be raised through term loans and promissory notes at interest rates below 1.5 per cent, with market liquidity ample, said Ms Jindarat Viriyataveekul, head of the Public Debt Management Office.
The borrowing will raise the public debt-to-GDP ratio to about 68 per cent by the end of September, remaining below the official ceiling of 70 per cent, she said.
The new borrowing is part of a 400 billion baht loan decree, which is facing a legal challenge.
Mr Ekniti said: “The measure is necessary because if we leave the economic crisis to go on, businesses will close, people will lose their jobs, and the economy will sink for a long time.” REUTERS
