Bangkok, 16 August 2019 (NNT) – Finance Minister Uttama Savanayana said today that the first meeting of the economics ministers chaired by Prime Minister Gen Prayut Chan-o-cha has approved urgent economic stimulus measures to raise confidence and generate greater cash circulation throughout the country. A sum of 316 billion baht in funds will be provided for the economic stimulus measures. If the cabinet approves them, the country’s economic growth will rise over 3%.
The measures are to cope with three issues, including the drought problem which will be handled by the Bank of Agriculture and Agricultural Cooperatives. Some 990,000 drought-affected farmers in three provinces will be assisted with a debt moratorium and interest rate cut for a year. A sum of 50 billion baht in interest-free emergency loans will be provided for those farmers who can each borrow a maximum of 50,000 baht. In addition, a five billion baht supplementary loan will be provided for the rehabilitation of farm production. Each of the affected farmers can borrow a maximum of 50,000 baht. Besides, about three million rice farmers will be provided with loans for production in 2019/2020 season.
A tourism promotion campaign will be launched to raise domestic consumption and investment with an e-wallet handout of 1,000 baht to each of the people aged 18 years or older. A total of 10 million people will be given the money to spend on food, goods and lodgings in provinces where they do not reside. In addition, those who spend via e-wallet more than 1,000 baht but no more than 30,000 baht will be entitled to a compensation pay of 15% of the total of the amount spent. That is designed to stimulate domestic tourism by the people. Detailed information about the tourism campaign’s measures will be provided by the Ministry of Tourism and Sports.
The finance minister said a tax deduction measure will be provided for purchases of machinery by investors this year. The government will contribute more to the SME Development Fund in order to provide loans with low interest rates and seven-year repayments for SME operators.