0.25% GDP boost sought from stimulus
The government's consumption stimulus measures and 50:50 co-payment scheme are expected to get 81 billion baht circulating through the economy, boosting the country's GDP by 0.25%, says the Finance Ministry.
The two policies will cover 24 million people nationwide, getting money circulating in the economy for the remainder of the year and adding to the growth momentum into 2021, said Deputy Finance Minister Santi Promphat.
Sustaining consumer purchasing power and helping reduce the living costs of low-income earners are the main objectives of these stimulus policies, Mr Santi said.
Fiscal Policy Office director-general Lavaron Sangsnit said the government aims to keep up the momentum of private consumption through capital worth 21 billion baht from state welfare and a combined 60 billion baht from the 50:50 co-payment scheme.
The cabinet yesterday approved the 500-baht monthly financial assistance given to 14 million low-income earners who have state welfare cards for three months from October to December, totalling 21 billion baht.
Cardholders can use the cash handout to spend at local Thong Fah (Blue Flag) stores.
The 50:50 co-payment scheme received cabinet endorsement. The measure allows 10 million registered people to shop for food, drinks and commodities at small shops, with the government subsidising 50% of the payment, up to 150 baht per day and no more than 3,000 baht from October to December.
A sum of 30 billion baht comes from the government, with another 30 billion baht derived from the 10 million registrants.
Eligible registrants are Thais aged 18 years and older. They can register online starting Oct 16.
Once registered, they have to identify themselves via the Pao Tang app, while registered shops must install the Tung Ngern app to receive the scheme's privilege.
The spending scheme will run from Oct 23 to Dec 31.