Thailand Considers Steps to Stimulate Growth

[misskit]

The political gridlock in Thailand is prompting the junta to evaluate measures to shore up the country’s slowing growth.




Finance Minister Apisak Tantivorawong on Friday said the ministry is considering steps to inject 20 billion baht ($629 million) of stimulus into Southeast Asia’s second-largest economy. Growth may slow to the low 3 percent range in the first and second quarters, he told reporters in Bangkok.




"We want the measures to be effective during the second and third quarters in order to make sure the economy won’t be slumping when the new government comes in," he said. The steps being mulled include tax breaks to spur tourism and assistance for people on low incomes, he said.

Pro-military and anti-junta parties are tussling to form a government after a disputed and inconclusive general election in March, following almost five years of military rule. The central bank warned the economy could be affected if the process of forming the next administration drags on to August or later.




Such a delay could affect the implementation of the national budget, public-sector projects and private-sector investment decisions, Bank of Thailand Governor Veerathai Santiprabhob said at a seminar in Bangkok on Friday.


The central bank’s forecast of 3.8 percent gross domestic product growth in 2019 -- close to the country’s potential of about 4 percent -- assumes a government is in place by June, Veerathai said. It’s too early to discount the possibility of an interest-rate hike, he said.


But some analysts are skeptical about the monetary authority’s scope to add to its December increase in borrowing costs, the first since 2011, because of political risk and a challenging export outlook in the trade-dependent economy.


Exports likely fell about 4 percent in March from a year earlier, according to a Bloomberg survey ahead of the official report on April 22. That would be the fourth decline in five months.


https://www.bloomberg.com/news/artic...tical-gridlock

[misskit]

Deputy premier orders Ministry of Finance to take economic stimulus measures

BANGKOK, 20 April 2019 (NNT) - In the light of indications of a national economic slowdown during the second quarter of this year due to external factors and a transitional period over the setting up of a new government, Deputy Prime Minister Somkid Jatusripitak has ordered the Ministry of Finance to take short-term economic stimulus measures, under which taxpayers may file the expenses on their children’s education in the upcoming semester as a tax deduction.


During a meeting with high-level officials of the Ministry of Finance, the deputy premier urged them to promptly find economic stimulus measures and keep the national economy from slowing any further. Those measures are set to be proposed for approval by the cabinet in the next two weeks.


Finance Minister Apisak Tantivorawong says the national economy during the second and third quarters would only grow by three percent, thus requiring some economic stimulus measures with a focus on promotion of domestic consumption for which an estimated 20 billion baht in funding is expected to be allocated.


At an initial stage, the measures call for tax deductions to help with students’ expenses and would be run in a manner similar to the Shopping for Country campaign. Tax-deductible expenses may include the purchase of students’ clothes, educational equipment and textbooks.


Besides, the regulations for housing loans provided to low-income earners would be made more favorable for them to borrow, while expenses on domestic recreational tours may also become tax-deductible.


National News Bureau Of Thailand

[HuangLao]

Growth of the GNP.
Traditional graft and corruption.

Sector growth.

[Maanaam]

Sounds like the junta is trying to garner public support, post-election, for their continued governance.
Patheticically transparent.

[HuangLao]

Sounds like the junta is trying to garner public support, post-election, for their continued governance.
Patheticically transparent.

Well....transparent or not.
It will be - as the hierarchy has deemed it to be so.

Tradition.

[Neverna]

Any reason to buy a new coloured shirt yet? That's always a popular way of getting people to spend money.

[misskit]

Every Thai to get Bt1,500 as govt tries to boost domestic tourism

The Nation


The Finance Ministry is launching a new stimulus package to boost the country’s domestic tourism by giving Thais Bt1,500 per person to spend when they travel to 55 provinces under a promotion campaign, a source from the ministry said.

Under the campaign, Thais aged 18 and over can register for the programme. The government will then deposit Bt1,500 into their accounts through the e-payment system. They can use the funds to make e-payments to the shops that have joined the project.


“We are collaborating with the Tourism and Sport Ministry and Krung Thai Bank for the campaign and have set a budget of up to Bt15 billion. We will now propose the programme to Deputy Prime Minister Somkid Jatusripitak to consider and to the Cabinet as soon as possible. We aim to launch the campaign before July this year,” a source from the Finance Ministry said.


The ministry expects up to 10 million Thais to register, he added.



Anusorn Tamajai, dean of Rangsit University’s Economics Faculty, said he agreed with the government’s plan to boost the economy.


The drought has severely affected the welfare of people living in rural areas, he said.


Moreover, the overall economy was also adversely affected by the contraction in exports.


Exports in March dropped 4.88 per cent year on year and exports in the first three months of this year were down 1.64 per cent due to the global slowdown and impact from the trade tensions between the United States and China.


The Finance Ministry was worried that economic growth would weaken to 3 per cent in the first and second quarters.


Finance Minister Apisak Tantivorawong had said previously that the government would inject about Bt20 billion into the economy and offer incentives to boost domestic tourism and extra cash to low-income earners who hold state welfare cards.




Every Thai to get Bt1,500 as govt tries to boost domestic tourism

[misskit]

Thailand Launches 21.8 Billion Baht Economic Stimulus Package

BANGKOK – Thailand’s Junta Government has launched a fresh economic stimulus package worth 21.8 billion baht to counter signs of an economic slowdown and boost domestic consumption to offset weaker exports.


The measures include 13.2 billion baht of public welfare benefits for low-income earners, the disabled, farmers and children; and tax measures worth 8.6 billion baht for those who purchase books, property and certain products such as uniforms, sports equipment and textbooks for students.


According to Nathporn Chatusripitak, spokesman to Deputy Prime Minister Somkid Jatusripitak, the government is hopeful that the measures could help the economy grow by 3.9% this year, up from the 3.8% projection of the Fiscal Policy Office (FPO).


FPO director-general Lavaron Sangsnit said the measures are aimed at shoring up the economy after signs of a slowdown in the first quarter of this year.

The FPO has reduced its 2019 economic growth forecast to 3.8% from 4% as slower global economic growth takes a toll on exports.


The new economic forecast is in line with the Bank of Thailand’s current projection of 3.8% and the National Economic and Social Development Council’s estimate of a range of 3.5-4.5%.


The lower estimate came after merchandise shipments in US dollar terms shrank 1.6% for the first three months, compared with the target of 2% growth.

According to Mr Lavaron, the new economic package will help boost the gross domestic product by 0.1% from 3.8% projection.


“The Thai economy has shown signs of slowing but it is not seriously ill. So, it has no need of strong medicine yet,” said Mr Lavaron.


As a result, the office did not push the 1,500-baht welfare card handout to promote internal tourism within the country.
Under the 15-billion-baht proposal, which has been dropped, 10 million people would have been allocated 1,500 baht each on their cards to spend across 55 second-tier provinces.

https://www.chiangraitimes.com/thail...s-package.html