Connect with us

Business

“Government stimulus package for Thai economy is unsustainable”

Published

 on 

Thaiger deals Thaiger deals

PHOTO: Wikipedia

Anusorn Tamajai, an economist from Rangsit University, says he expects the proposed package to make little difference and has declared it unsustainable.

The package, which should be approved this week, is worth 370 billion baht and includes cash handouts for farmers and low-income earners, grants for children, incentives for domestic travelers, and tax incentives for small businesses.

It’s hoped to stimulate the economy by 3%, in the wake of domestic uncertainty and the ongoing US-China trade war. Last week, the Finance Minister said the aim of the package was to prevent growth sliding below 3% in 2019.

However, economist Anusorn Tamajai has his doubts.

“Short-term spending as part of populist policies will not help much, as the Thai economy is monopolised by big business.”

He adds that most spending by low-income groups will end up as revenue for large businesses. However, he agrees with the plan to reduce the tax burden for small and medium-sized enterprises, which could lead to more private investment.

The government plans to offer generous tax reductions for those who import machinery to upgrade their production with a five-year depreciation allowance. The state-run Government Savings Bank and Krung Thai Bank will also provide combined soft loans worth about 100 billion baht.

The government also plans to direct a number of other state-run banks to provide soft loans to farmers and lower income groups, which Anusorn warns may not be sustainable as its effectiveness relies on public confidence in the future.

Thai governments often resort to state-run bank lending, quasi-fiscal measures that usually increase the burden for banks but translate into a burden for tax payers later.

SOURCE: The Nation

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

The Thaiger is Thailand's largest online portal for news, videos and information.

Follow Thaiger by email:

Koh Samui15 mins ago

Koh Samui’s Moving Market – a hidden local treat

Visa18 mins ago

Thailand’s 10 year LTR visa most popular among Americans and Chinese

Politics49 mins ago

Thailand PM wants to groom successor in two years

Sponsored7 hours ago

Challenges of starting a business in Thailand as a foreigner

Bangkok1 hour ago

VIDEO: Taxi meter rises suspiciously quickly in Bangkok, Thailand

Thailand2 hours ago

Man wins 144 million baht in Thailand’s lottery

Bangkok2 hours ago

Plumber murders and robs Thai woman in Bangkok

Join the conversation on the Thaiger Talk forums today!
Drugs3 hours ago

Man returns for bag with meth pills he left at restaurant

Transport3 hours ago

Porsche sales in Thailand roaring thanks to nation’s entrepreneurs

Visa3 hours ago

Overstay crackdown uses facial recognition tech

Thailand4 hours ago

Father dies trying to save son from teenage gang

Songkhla5 hours ago

Railway bomb kills three in southern Thailand

Thailand5 hours ago

Restaurant in Japan urges Thai tourists to flush tissues down the toilet

Thailand6 hours ago

Frenchman arrested for scamming Thai woman out of 2 million baht in Bangkok

Thailand6 hours ago

CAAT warns Thai VietJet for cancelling three Phuket – Bangkok flights in one day

Entertainment7 hours ago

VIDEO: Harry and Meghan haters out in full force ahead of Netflix series

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending