Government economy plan: Cost of living cuts, fuel and electricity price adjustments
The government plans to announce initiatives to reduce living costs and boost the economy in an upcoming Cabinet meeting. Deputy Finance Minister Julapun Amornvivat revealed these measures would involve changes to diesel and electricity prices.
A reduction in diesel excise tax is under consideration to lower retail prices at the pump and help the economy. A potential freeze on government debt payments to the Electricity Generating Authority of Thailand (EGAT) is also being discussed. This would ease EGAT’s burden, as it has been subsidizing household electricity rates since September 2021, costing around 135 billion baht.
The Pheu Thai Party‘s proposition to stimulate the economy by distributing 10,000 baht in digital cash was addressed by the party’s acting deputy leader, Kitti Limsakul, a member of the party’s policy committee. He stated that the disbursement would occur in two or three instalments, not all at once.
In response to critics questioning the feasibility of this policy, Kitti clarified that the policy does not conflict with the Bank of Thailand‘s (BoT) regulations and is entirely implementable. He further explained that digital money serves as a token, which can be traded for baht notes under the law on digital assets and development for the economy and society.
An initial cash payment of approximately 2,500 baht will be disbursed before holidays like Songkran, with its impact on the economy assessed for effectiveness. If successful, another 2,500 baht package would be released. The final payment of 5,000 baht would follow, aiming to boost the country’s annual GDP growth by around 5%.
Vendors receiving digital money payments would need to pay income taxes.
However, there’s some contradiction, as Pheu Thai’s Facebook page insists on a one-time 10,000 baht transfer, while the instalment plan was mentioned as a personal opinion.
Transport Minister Suriya Jungrungreangkit is working on another plan to stimulate the economy by standardising electric rail fares in Bangkok to a flat rate of 20 baht per trip, requiring an annual government subsidy of about 5.44 billion baht.
Suriya also plans to expand regional airports’ capacity, including Suvarnabhumi, Don Mueang, and Phuket, to support the aviation industry and tourism.
The government, with support from various councils, is accelerating the drafting of its policy statement, to be presented in parliament on September 11. Key focuses include economic stimulus, tourism revival, and addressing household debts
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