Finance Minister Sommai Phasee on Thursday denied a cash hand-out of 40 billion baht to low-income rice farmers was a populist policy, but rather a one-time, short-term measure that will not have an impact on the country’s fiscal policy.
Finance Minister Sommai Phasee
The measure for farmers is part of the government’s 364.5-billion-baht stimulus package launched Tuesday in a bid to boost the economy over the next three months.
Mr Sommai told Naewna Online that the measure was a one-off aid package and not attached to the next fiscal year. The stimulus package was necessary because of the sluggish economy this year, he said, adding Thailand could not depend on the export sector at the moment.
The government, facing a barrage of criticism from political parties, had chosen to take care of farmers first because of their minimal income and the losses they had suffered from low crop prices, he said. The cash-injection must go to the low-income group to help boost consumption.
Mr Sommai argued the scheme - to be paid out next month - was not a populist policy, and it had been thoroughly discussed by the cabinet.
It was designed to help poor farmers who possess no more than 15 rai of farmland. This group had not benefited from the controversial rice-pledging scheme, he noted.
Pichai Naripthaphan, a former energy minister and Pheu Thai economic team member, felt the cash hand-out was a populist policy like that arranged by his party. But it was “half-courageous and half-faint-hearted”.
He said the government should not fear criticism of populism as it could see aid being stifled. “The money to be handed out is inadequate when compared with farmers’ cultivation costs,” he said.
Former finance minister Korn Chatikavanij said the concept of handouts for farmers was not different from the Democrat government’s 2,000-baht cheque handout to increase economic growth and the Small-Medium-Large (SML) village fund project initiated by the Thaksin Shinawatra administration.
On whether the scheme was a populist policy, the ex-Democrat MP said: “For this [government’s] claim, it is not a populist policy. But if politicians did the same, it would be. People should understand by now that what is done and can benefit the country, rather than damage it, must be done. So, it's better if we stop the blame game."
The chairman of the Thai Farmers Association, Wichian Puanglamjiak, said farmers were surprised and happy to receive the hand-out. But they wanted clarification of the conditions and the purpose of the financial aid.
“We don’t want to be accused of draining the national budget, an issue that was debated by rival political groups in the past,” he said.
Somchoke Pananil, a Pathum Thani farmer, said he sold his paddy from the previous harvest for only 6,500 baht a tonne. He urged the government to control the price of fertilizer and pesticides which would be a direct help to farmers.
The money will be paid to 1.8 million households by Oct 20. Those with no more than 15 rai of farmland will get a one-time payment for cultivation costs of 1,000 baht a rai.