PM Prayut calls for more domestic spending as ministry readies stimulus measures

[webfact]

PM calls for more domestic spending as ministry readies stimulus measures

By The Nation

 

 

The government has yet to finalise details of its measures to stimulate the economy, including the plan to hand out Bt1,500 for people to travel to second-tier cities, Prime Minister Prayut Chan-o-cha said yesterday.

 

He said the government and related agencies were studying the plans and nothing has been concluded, adding that the authorities need to take many factors into account. 

 

The PM also said people with spending capacity should spend, because if people stop spending, everything will ground to a halt, admitting that the government needed to introduce measures that would encourage domestic spending. 

 

In a related matter, the Finance Ministry will reportedly propose economic stimulus measures worth over Bt22 billion on April 30. 

 

Among the measures planned, about Bt 7 billion will be added to the state welfare cards for three specific groups. Of the three, parents will be given Bt500 per child for the purchase of school uniforms, learning tools, textbooks and sportswear; registered farmers will receive Bt1,000 each to buy fertiliser; while 100,000 registered disabled persons will be given an additional Bt200 to Bt300 per month from May to September. 

 

The state already provides subsidies worth Bt600 to Bt800 per month through these cards.

 

The other two measures will involve tourism. 

 

One project is to promote tourism in secondary cities, aiming to give 10 million people, aged 18 or older, Bt1,500 each to spend in secondary cities. 

 

Those who register for this travel subsidy will first have to use a debit card in a government blue flag shop in any of the 55 secondary cities to prove their identities through an electronic data capture system. 

 

Once their identities are proven, Krungthai Bank will transfer Bt1,500 to their bank accounts for spending. Another tourism promotion measure will be the extension of tax-deduction measures, which ended in December last year. 

 

The measure will offer tax |deduction for spending of not more than Bt15,000 per person in both main and secondary cities nationwide.

 

The ministry also plans to offer a measure to prop up the property market by offering tax benefits to buyers, while another will be to reduce the tax on books throughout the year. As for business, the ministry will propose a tax deduction of 1.5 to 2 times the expense for shops using the point of sale system as a means to encourage shops to enter the electronic payment system. 

 

Also, in order to promote the future workforce for Thailand’s 10 targeted industries, the ministry will also propose the setting up of a Student Loan Fund to fund students who want to study in these related fields. 

 

Source: http://www.nationmultimedia.com/detail/national/30368319

 

-- © Copyright The Nation 2019-04-25

[khwaibah]

3 hours ago, webfact said:

Bt1,500 for people to travel to second-tier cities

 

Soi Kola Surin watch out.????

[Lungstib]

Nothing more than an admission that income inequality is so high that something needs to be done. But not like this. The trickle down theory which has been suggested for several years just doesn't work, the rich just go on getting richer. The ordinary, poor Thai worker doesn't have a car to pack his/her family into and will not be spending money visiting the mountains and beaches. With 14 million people already on welfare this is nothing more than a smokescreen to suggest someone cares about the fifth of the country in poverty.

[ChrisY1]

Buying people works in the short term....but when the money runs out, it's back to normal!

Improving education, medical, transport etc, just aren't winners in Thailand....money is the answer everyone thinks

[BigBadGeordie]

Bread and circuses.

[Lupatria]

In other words: the deeper you are in depts, the easier it is for us to tighten the screw.

[Cadbury]

1 hour ago, Lungstib said:

Nothing more than an admission that income inequality is so high that something needs to be done. But not like this. The trickle down theory which has been suggested for several years just doesn't work, the rich just go on getting richer. The ordinary, poor Thai worker doesn't have a car to pack his/her family into and will not be spending money visiting the mountains and beaches. With 14 million people already on welfare this is nothing more than a smokescreen to suggest someone cares about the fifth of the country in poverty.

Spot on. This graph summarises perfectly what the junta has done to the incomes of 99% of the people over the 5 years they have been in power.

While for the remaining 1% filthy rich, which includes certain toad like military generals, who own 67% of the wealth the money just keeps rolling in.

Dishing out scraps of money is tokenism a la junta; it will make no difference other than to make the junta feel like they are the milk of human kindness.

While the generals remain in power purely for the benefit of the rich they will just eat away and erode the incomes of those who need it most.

 

https://asia.nikkei.com/Spotlight/Cover-Story/The-99-election-Thais-are-worse-off-after-five-years-of-military-rule

[Srikcir]

If the junta achieves all these stimulus measures, it may so deplete the Treasury that the next elected government (assuming not led by Prayut) will have few of their economic agendas implemented.

• Case in point is the new property tax on land and improvements passed two years ago that based taxes on permitted highest and best use and not to actual use (ie., shopping mall vs parking lot). The government has deferred that new tax until after installment of the next elected government. Now the ministry plans to reduce the tax on books throughout the year for real estate. The result may be that the projected revenues from the new property tax law will be diminished by Prayut's stimulus measures. 

[holy cow cm]

I thought that most Thai households are in considerable debt already. Why would they tease the Thai with a token offering (of not  their money) to spend more going more in debt? Utterly absurd and out of line!

[shady86]

How much 1,500B can buy nowdays? Its not even enough to get a "decent meal" for a family of 4. 

[david555]

Maybe he can think over what the new 800/400 k freezing money means for the 7 months full and 5 half  in less spending power by retirees if not replaced by extra transfers in,...average over a full year= 40 000+ baht less available by month , 20 000 for the married ones to Thai . 

And most shall be missed by …. the Nord East ...so his " popularity" over there  may rise ????

[Jimbo2014]

2 hours ago, shady86 said:

How much 1,500B can buy nowdays? Its not even enough to get a "decent meal" for a family of 4. 

A bottle of sangsom,  a short time hotel, a few bags of chopped Sausages at the local 711.  Local tourism will really benefit from this cash injection ????.  PM sounds out of touch with the average Thai.

[PatOngo]

13 hours ago, webfact said:

The PM also said people with spending capacity should spend, because if people stop spending, everything will ground to a halt, admitting that the government needed to introduce measures that would encourage domestic spending.

So get out there and buy a Richard Mille watch, or two, what's wrong with you all?

[sfokevin]

1 hour ago, Father Fintan Stack said:

It's all going horribly wrong.

Not So!!!...

Get over to the Bank Of Thailand and load up all the foreign reserves up in a helicopter and seed the clouds with it... 

 

Planes, Trains & Submarines for all!...

 

Make the BHT-USD go back to 40!...

[BuckBee]

Well uncle Buck Banana and General Rolex should bring their undeclared billions of baht (all legally acquired of course from smart saving and investment ! ???? ) into the country and spend it, problem solved in one morning lol .

 

Looking at national debt figures I don't think average people got 20bucks spare and about furthest they can afford holiday is the Big C songtow for 7baht ....

[nausea]

11 hours ago, Lungstib said:

Nothing more than an admission that income inequality is so high that something needs to be done. But not like this. The trickle down theory which has been suggested for several years just doesn't work, the rich just go on getting richer. The ordinary, poor Thai worker doesn't have a car to pack his/her family into and will not be spending money visiting the mountains and beaches. With 14 million people already on welfare this is nothing more than a smokescreen to suggest someone cares about the fifth of the country in poverty.

Yeah, I'm sure the old lady who picks through the trash every morning, will be thrilled by this. I guess, she's making plans already.

[JAG]

4 hours ago, Father Fintan Stack said:

It's all going horribly wrong.

I wonder whether someone has managed to get a realistic assessment of the current economic state of affairs into his in tray?

[ratcatcher]

12 hours ago, BigBadGeordie said:

Bread and circuses.

Obviously our PM has been reading Roman history.

[Khaeng Mak]

18 hours ago, webfact said:

The PM also said people with spending capacity should spend, because if people stop spending, everything will ground to a halt, admitting that the government needed to introduce measures that would encourage domestic spending. 

Just order your military brethren to start spending.  They constitute a good portion of the 1% elite here that hold more than 69% percent of the wealth.