In a strategic effort to bolster local commerce, the Thai government has implemented a new policy restricting the use of the 10,000-baht handout from being spent on mobile phones, electronics, and electrical appliances. Deputy Finance Minister Julapun Amornvivat announced the decision, which aims to ensure that the funds are directed towards small, local businesses rather than large department stores or electronics giants.
The policy is part of a broader initiative to support small-scale retailers and service providers across the country. This move marks a significant shift from the initial plans that allowed beneficiaries unrestricted use of the distributed funds. The government anticipates that this targeted approach will prevent a large-scale outflow of capital to multinational corporations and instead promote local economic growth.
Fiscal considerations have also influenced this decision. Initially, the handout budget was set at 500 billion baht (approximately USD 13.7 billion). However, after analysis from the Fiscal Policy Office indicated that not all eligible individuals would register, the government revised its budget downwards. This adjustment has allowed for financial recalibrations, reducing the anticipated burden on public funds.
Julapun highlighted that only 80-90% of the originally projected funds might be necessary, which reduces the need for additional loans from the Bank for Agriculture and Agricultural Cooperatives (BAAC). The program’s funding will now be covered by the national budgets for 2024 and 2025, ensuring that the expenditure remains within government-controlled parameters without requiring external borrowing.
The sub-committee’s plan is awaiting approval from Prime Minister Srettha Thavisin’s main panel, scheduled for review on July 8. Following this, the proposal will proceed to the cabinet for final consideration. The Prime Minister is expected to announce the final details, including registration processes and disbursement schedules, on July 24, with the aim of commencing disbursements in the final quarter of the year.
The financial strategy has sparked mixed reactions, drawing scrutiny from various economic experts and former officials. The debate continues over the balance between fiscal responsibility and the need for economic stimulation, highlighting the complexities involved in such a significant government initiative.
In attendance at the announcement were various officials and stakeholders who have been closely monitoring the policy’s development and potential impact on the economy.
