The government is poised to introduce an economic booster package at year-end, extending into 2025.
According to Deputy Finance Minister Julapun Amornvivat, the economic stimulus committee chaired by the prime minister is scheduled to meet on Tuesday to propose a major stimulus package starting around the end of 2024.
A timeline is needed, while the stimulus measures are expected to involve various ministries to utilise several different mechanisms to drive the economy, said Mr Julapun.
The stimulus measures may be divided by sector and will include the cash handout scheme, he said.
However, the committee is unlikely to conclude the measures in one meeting, said Mr Julapun, with several more to follow up on progress.
Funding for the stimulus projects will not come from one budget source, he said.
A portion of the funding will come from the government's stimulus programme for fiscal 2025, which was allocated a budget of 180 billion baht.
Some projects will not require a budget allocation, while others will be administered by state financial institutions that are listed in the Public Service Account, said Mr Julapun.
He said Thailand's economy is improving and is expected to perform well in the fourth quarter.
Though the 10,000-baht handout for 14.5 million people holding welfare cards and disability cards has already been distributed and spent, Mr Julapun said there are still challenges to address, as sales of pickups are slumping and the real estate sector is stagnant.
He said the stimulus committee meeting is expected to discuss the second phase of the cash handout and the debt restructuring programmes for retail borrowers at financial institutions.
The debt restructuring is projected to include measures to suspend interest payments and reduce monthly instalments, with the Finance Ministry allowing financial institutions to lower their fee contributions to the Financial Institution Development Fund.
Part of the funding will come from financial institutions' own resources, said Mr Julapun.
A potential sticking point is whether participants in the debt restructuring programme will be able to borrow more, as he said the government disagrees with the notion that increased access to credit will lead to debt and eventually non-performing loans.
Instead, the government sees greater access to credit as an opportunity for individuals to regain financial independence, said Mr Julapun.
Therefore, these individuals should still be able to access credit while participating in the debt relief programme, he said.
"We need to create mechanisms to make credit more accessible, such as reducing interest rates through soft loans, to provide more opportunities for people to access credit," said Mr Julapun.
