Utility bills next in line for welfare subsidies

Utility bills next in line for welfare subsidies

Help with electricity, water in third phase

Mr Apisak says the Finance Ministry will equip 5 million low-income earners with fishing rods to let them sustain their income. PATTARACHAI PREECHAPANICH
Mr Apisak says the Finance Ministry will equip 5 million low-income earners with fishing rods to let them sustain their income. PATTARACHAI PREECHAPANICH

Utility subsidies will be an integral part of the third phase of the government's welfare scheme for poverty, aimed at further alleviating the living costs of the poor.

Details of subsidising electricity and tap water bills for the poor will be considered after the second phase of the welfare and subsidy scheme goes before the cabinet on Jan 3, said Finance Minister Apisak Tantivorawong.

At present, the Metropolitan Electricity Authority and the Provincial Electricity Authority subsidise power bills for homes installed with a 5-amp power meter size and using not more than 50 units of electricity a month for three consecutive months, while the Metropolitan Waterworks Authority and the Provincial Waterworks Authority also subsidise up to a certain amount.

Once the utility subsidy is included in the government's welfare and subsidy scheme, it will be funded by the Pracha Rat Fund for Low-Income Earners, which has capital of 46 billion baht, Mr Apisak said.

The fund takes responsibility as the government's tool in providing subsidy and welfare to recipients of the state scheme.

In late August, the cabinet approved the first phase of the aid package, worth 41.9 billion baht, for 11.7 million low-income earners -- 5 million of whom have income below the poverty line of 30,000 baht a year.

Under the scheme, the government transfers 200-300 baht a month to each welfare smart card. Recipients earning less than 30,000 baht a year get a monthly allowance of 300 baht, while those with annual earnings of 30,000-100,000 baht receive 200 baht to buy discounted goods at Thong Fah Pracha Rat shops and other designated stores.

Each cardholder also receives 1,500 baht a month to subsidise transport and 500 baht for inter-provincial public buses, third-class trains, and local public buses and electric trains.

The second phase includes accessibility to the government's financial sources and non-compulsory education such as training courses to improve career skills, jobs and the four basic needs of living: food, home, clothing and medicine.

Mr Apisak said the second phase is designed to create fairness to help 5 million low-income earners (those earning below the poverty line) sustain their income.

"The Finance Ministry is ready to spend money to equip them all with fishing rods to let them sustain their income," he said.

Training projects are expected to kick off in January. Recipients who are called for training but do not turn up may have their subsidy docked.

"Disparity is not limited only to the aspect of money," Mr Apisak said. "We have a duty to provide opportunity for all of them equally."

To radically address the root causes of poverty, the Finance Ministry will have officials visit the scheme's recipients again to find out their needs and means.

"I've told officials that we want measures that can be put into practice," Mr Apisak said. "We don't want to write a thesis that cannot turn into practice. I don't want it to be like that."

The Finance Ministry will propose a draft law to turn the Pracha Rat Fund for Low-Income Earners into a revolving fund that will allow it to receive a government budget or donations for spending that is in line with the fund's objectives, the finance minister said.

When the public sector adopts the technology that enables authorities to analyse data on welfare recipients' electricity and tap water consumption, those found with income exceeding the scheme's criteria will have their subsidy cancelled automatically. These recipients will not be allowed to register for the programme in the future. Registration is done at branches of state-owned banks.

Criteria for the scheme this year require applicants to be unemployed or to have had an income of 100,000 baht or less last year. Applicants' savings, savings certificates and bond holdings must be worth less than 100,000 baht in total.

In related news, Mr Apisak said the Finance Ministry is considering adopting the Bank for Agriculture and Agricultural Cooperatives model, which encourages farmers to upgrade as agricultural small and medium-sized operators to create supply chains and boost income.

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