Thailand announces second phase of co-payment scheme
Cabinet to review tourism incentives as economic stimulus expands
The Thai government prepares to launch the second phase of its popular co-payment consumer subsidy scheme in January in a bid to jumpstart domestic spending and bolster economic growth.
The announcement was made yesterday, October 20, by government spokesperson Siripong Angkasakulkiat who confirmed that the upcoming phase will be financed from the 2026 fiscal budget. However, the total budget allocation has not yet been finalised.
“The second phase will begin in January. We are still working on the funding details.”
The first phase of the scheme (คนละครึ่ง พลัส), worth 44 billion baht, aimed to support 20 million Thai citizens with government-subsidised spending. It was fully subscribed within a single day of registration, highlighting strong public demand.
The programme works by having the government subsidise a portion of purchases made by registered participants, encouraging consumer spending and providing financial relief for households.
This latest push forms part of a broader effort by Prime Minister Anutin Charnvirakul’s administration to lift GDP growth above 2.2% for the year. With concerns mounting over sluggish post-pandemic recovery and weakening domestic demand, the government is expected to unveil additional economic stimulus measures in the coming days.
According to officials, the Cabinet will review new proposals today, October 21, including possible tax deductions aimed at stimulating domestic tourism.
However, time is running out for the current administration to roll out these incentives. Prime Minister Anutin has announced plans to dissolve Parliament by the end of January, with a general election scheduled for March or early April.
The co-payment scheme has been widely praised for swiftly injecting cash into the economy and bolstering local businesses, especially in retail and services. Economists say that, if well-targeted, the second phase could give a timely boost to both consumer confidence and small-scale entrepreneurs, Bangkok Post reported.
As election season nears, the success of this new round of subsidies could play a key role in shaping public perception of the government’s economic stewardship. More details on the programme’s scope, eligibility, and spending limits are expected to be announced following Cabinet approval.
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