The Thai Cabinet is expected to approve a comprehensive assistance package aimed at alleviating public debt and supporting the agriculture sector. Deputy Finance Minister Julapun Amornvivat announced that the economic cabinet meeting, chaired by the prime minister, will consider various measures, including household debt relief.
Key Takeaways
- The Thai Cabinet is set to approve assistance measures for farmers and other sectors.
- Measures include soft loans worth 100 billion baht and a fertiliser co-payment project.
- The assistance package aims to address public debt and stimulate the economy.
Economic Cabinet Meeting
Deputy Finance Minister Julapun Amornvivat revealed that the economic cabinet meeting scheduled for Monday will focus on assistance measures for various sectors. The meeting, chaired by the prime minister, will consider household debt relief and other support mechanisms.
"We are looking at various sectors and mechanisms to provide assistance, with measures to help each group," said Mr. Julapun. However, he noted that conclusions from relevant agencies are still pending.
Public Assistance Measures
A source from the Finance Ministry disclosed that the public assistance measures to be considered include soft loans worth 100 billion baht, to be distributed by the Government Savings Bank. These loans were previously postponed to seek opinions from relevant agencies.
Previous Economic Stimulus Measures
The government has previously implemented economic stimulus measures, particularly for the real estate sector. These measures included reducing transfer and mortgage fees and offering corporate income tax exemptions for developers building homes priced under 1.5 million baht. Since their approval in April, these measures have injected 65 billion baht into the economy.
Fertilizer Co-Payment Project
The cabinet had also approved a fertilizer co-payment project to assist farmers. This project subsidizes fertilizer costs at 500 baht per rai (up to 20 rai per farmer) for the 2024/2025 production season, requiring a budget of nearly 30 billion baht. There are approximately 4 million farming households in Thailand.
Future Considerations
Mr. Julapun mentioned that discussions are ongoing with the Revenue Department about tax measures. He emphasized that the timing of public assistance measures must be appropriate, as some measures have limitations. Some measures fall within the minister’s authority to implement, while others may require legal amendments.
The upcoming economic cabinet meeting is expected to provide much-needed relief to farmers and other sectors, aiming to stimulate the economy and address public debt.
Sources
- Bangkok Post – Cabinet set to approve assistance for farmers, Bangkok Post.
