The government is mulling an emergency decree to enable it to borrow more money to support the economy over the next two to three months.
The Finance Ministry has been asked to work on a “big” stimulus package, Deputy Prime Minister Somkid Jatusripitak said on Friday after a meeting of key officials and regulators. Extra borrowing in excess of 200 billion baht is possible given the strength of the government’s finances, he said.
Southeast Asia’s second-largest economy is forecast by the central bank to suffer its worst contraction this year -- a 5.3% decline -- since the Asian financial crisis, even after the government rolled out a series of stimulus programs.
There is no limitation on the size of the potential new funding, Mr Somkid said, adding the eventual program will be large and nationwide given the depth of the current economic problems.
The novel coronavirus outbreak has badly damaged both tourism and domestic consumption, two key drivers of expansion, amid restrictions to curb the spread of the disease known as Covid-19.
The Public Health Ministry on Friday confirmed infections had risen by 91 to 1,136, and that another person had died, taking overall fatalities to five.
