The cabinet is set to consider and approve a proposal by the Interior Ministry to use 130-150 billion baht now controlled by local administrative organisations for local development that will help stimulate the domestic economy and raise income in local communities.
Deputy Prime Minister Somkid Jatusripitak said yesterday that he agreed with the proposal, adding that the Interior Ministry has already agreed to amend ministerial regulations to let local administrative organisations use 130-150 billion baht of their accumulated funds for projects aimed at creating jobs.
Under the current Interior Ministry rules, the budget offered annually by the government is permitted for use only for activities of local organisations, not for any sort of investment.
"The cabinet will raise the proposal soon for consideration," Mr Somkid said. "But local authorities themselves should come up with quality investment projects that can help generate income for their communities, such as community tourism projects and added value to agricultural products."
According to Mr Somkid, the government is due to carry out various projects during the rest of the year to reduce income disparity and help low-income earners.
He said internet broadband development is also expected to finish next year, and the government will organise community training enterprises to apply e-commerce to selling products nationwide and abroad.
Mr Somkid cited China as a success story in encouraging local communities to use e-commerce to sell their products, consequently addressing poverty and reducing income disparity.
He said the government right now has two urgent projects to help low-income earners.
Firstly, the Finance Ministry is teaming up with the Federation of Thai Industries to hire more retired people.
The government expects the project to provide retired people with a steady income to help take care of themselves.
Secondly, the government will let state agencies build more housing projects for low-income earners with long-term lease contracts of about 40 years.
"Local economy development is one of the government's current top priorities, with an aim to raise income of low-income earners," Mr Somkid said. "The export sector, which has already recovered with estimated growth of about 10% this year, is no longer an area of concern."