The government has rolled out further stimulus measures intended to inject about 144 billion baht into the economy to boost full-year economic growth to 2.8% and maintain momentum into the first quarter of next year.
Finance Minister Uttama Savanayana said the cabinet approved the Finance Ministry's package which comprises three measures after it was predicted that the global economy is likely to remain in a state of flux and exert further pressure on Thailand.
"The aim is to boost the economy during the remainder of this year and the first quarter of next year," Mr Uttama said after the cabinet meeting on Tuesday.
He said the government expects the measures to propel full-year economic growth to 2.8% from a projection of 2.6% recently announced by the National Economic and Social Development Council (NESDC).
Last Monday, the NESDC reported the economy grew 2.4% year-on-year in the third quarter, driven mainly by increases in private and government consumption and investment, slightly improving from 2.3% year-on-year in the second quarter but lower than 2.8% in the first quarter.
The slower third quarter prompted the government's think tank to yet again cut its GDP forecast for 2019 to 2.6% -- down from an earlier projection of 2.7-3.2% -- blaming poor export prospects in light of the slowing global economy, the prolonged trade war and the baht's appreciation.
The first stimulus measure, which is divided into three smaller projects, is intended to strengthen the grassroots economy and involves a 14.3-billion-baht upgrade of village infrastructure.
A total of 71,742 villages under the National Village and Community Fund will receive up to 200,000 baht each under the project.
The cash is aimed at encouraging infrastructure investment and creating jobs in small communities, such as the construction of rice barns, community rice mills and fertiliser-making factories, Mr Uttama said.
Another measure involves a one-year moratorium on principal payment for members of the National Village and Community Fund, which is expected to spur members into spending about 50 billion baht, Mr Uttama said.
Another project is the state-owned Bank for Agriculture and Agricultural Cooperatives' (BAAC) 50-billion-baht loan scheme with an annual interest rate of 0.01% for three years.
The loan will be extended to members of the National Village and Community Fund, community entrepreneurs, agricultural cooperatives and farmers, among others, Mr Uttama said.
The second stimulus measure involves an allocation of 26.7 billion baht to subsidise rice farmers' harvesting costs and improve the 2019/2020 crop. Each household will receive 500 baht per rai on up to 20 rai.
The government has also approved an additional budget of 2.6 billion baht to support rice production costs for the 2019/2020 crop because more farmers have registered for the scheme. The payment period will be extended from Dec 31 to April 30, next year, Mr Uttama said.
The minister went on to say that another 5-billion-baht stimulus measure is aimed at easing the financial burden of house-buyers and enabling the public to have their own houses under the Baan Dee Mee Down project.
Participants will receive cash rebates of 50,000 baht each. They must have a monthly income of no more than 100,000 baht or 1.2 million baht a year, and be registered in the Revenue Department's tax database. Only the first 100,000 participants who meet the Finance Ministry's criteria are entitled to the privilege.
Supant Mongkolsuthree, chairman of the Federation of Thai Industries, welcomed the government's latest stimulus measures, saying the measures should boost the economy in the short term and yield quick results.
Visit Limlurcha, chairman of the Food Processing Industry Club and vice-president of the Thai National Shippers' Council, said he agreed with the measures, though it depends on how quickly the budget will be disbursed.