Govt to spend Bt50 billion in cash handouts for poor, tourism stimulus package

[webfact]

Govt to spend Bt50 billion in cash handouts for poor, tourism stimulus package

By The Nation

 

 

The Prayut II government plans to spend Bt50 billion to stimulate the economy by handing out Bt1,000 cash to each of the registered poor and Bt1,500 to members of the public to spend while visiting other provinces, a source said.

 

The source from the Government House said the stimulus package would be submitted for Cabinet deliberation either at this week’s or next week’s meeting.

 

The source said the government plans to spend some Bt20 billion to stimulate the economy by giving an extra Bt1,000 for each state welfare card holder to spend. The government has earlier allowed low-income people to register to receive a monthly allowance that is remitted to their accounts and can be used for buying monthly necessities and for travelling costs.

 

The source said the extra Bt20 billion is aimed at alleviating economic hardship and that the money would revive the economy at the grassroots level.

 

The source said the government also plans to spend Bt15 billion to stimulate tourism by allowing each Thai, who is at least 18 years old, to receive a Bt1,500 subsidy to spend visiting a province.

 

The source said tourists must stay at hotels or resorts registered for the project and these venues would be allowed to reimburse Bt1,500 to each tourist staying there. Visitors would have to pay any additional costs themselves. 

 

The source said the government believes the measure will stimulate domestic tourism.

 

Yutthasak Supasorn, governor of the Tourism Authority of Thailand, confirmed that the government was aimuing to stimulate domestic tourism by allowing Thai citizens, who are at least 18 years old, to be eligible for Bt1,500 subsidy each for visiting second-tier tourism provinces.

 

Yutthasak said that 55 provinces are classified as second-tier tourist destinations. About 10 million Thais would be eligible for the subsidy, he added.

 

Yutthasak said he believes the measure would really stimulate tourism.

 

Tourism and Sports Minister Phiphat Ratchakitprakan had discussed the measure with Finance Minister Uttama Savanayana and that the finer details would be worked out before the project was submitted to the Cabinet for approval.

 

An earlier plan of the Prayut I government to boost tourism by giving Bt1,500 cash to each citizen was cancelled following strong criticismsfrom social networkers.

 

The same Government House source said the government would also spend Bt15 billion to help farmers and small and medium-sized entrepreneurs, including a measure to subsidize interest payments for the SMEs.

 

The government believes the stimulus package would help the economy expand by almost 3.5 per cent this year, the source added.

 

Source: https://www.nationthailand.com/business/30374650

 

-- © Copyright The Nation Thailand 2019-08-13

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[RotBenz8888]

Desperation more evident by the day.

[BobbyL]

Bringing back the idea that was already scrapped I see.  

 

No comments on the 1000b welfare pay, but I just cannot see how having a 1500b reimbursement to visit 2nd tier tourist provinces is going to stimulate the economy. 

[Chelseafan]

So Somchai is encouraged to go to another province for a mini vacation, spend 3k of money he doesn't have on accommodation and travel expenses only to receive 1500 baht back. Is it me or do I see a flaw in this plan ?

 

[thaiguzzi]

 

What a daft idea.

I'm waiting for the usual suspects...

Yingluck's Rice Scheme....

But but but Thaksin...

[SmartyMarty]

more evidence these people know nothing about running an economy.

[GalaxyMan]

The government is desperate for money, constantly inventing and raising taxes. Beginning in September, there is a 5% tax on the money gifts that Thais receive at weddings, birthdays, etc. Seems like another cheap way to try to buy the 'loyalty' of the people.

[Eric Loh]

Why don’t the government just raise minimum wage instead of temporary fixes that will just kick the problem down the road. 

[mok199]

A nation that relied on appearance ,grandstanding,backslapping and over the top ceremony,with very little concern about the people and results..now finds itself so stuck it has nothing left but cash handouts

[worgeordie]

It seems any problem the government has....is to throw money at it.

programs like this open up the problem of diversion,and you can be

sure a % will disappear.just like that !

regards Worgeordie

[nev]

Can us Farang register too.

[Fred white]

Is the govt stupid who is going to tell them how much cash they received for a gift ????

[GalaxyMan]

34 minutes ago, Eric Loh said:

Why don’t the government just raise minimum wage instead of temporary fixes that will just kick the problem down the road. 

Because the rich 1% who own 80% of Thailand won't stand for the government cutting into their profits.

[Fred white]

44 minutes ago, Chelseafan said:

So Somchai is encouraged to go to another province for a mini vacation, spend 3k of money he doesn't have on accommodation and travel expenses only to receive 1500 baht back. Is it me or do I see a flaw in this plan ?

 

The hotels will jack their prices up so they can pocket more of that money ????

[thaiguzzi]

38 minutes ago, GalaxyMan said:

The government is desperate for money, constantly inventing and raising taxes. Beginning in September, there is a 5% tax on the money gifts that Thais receive at weddings, birthdays, etc. Seems like another cheap way to try to buy the 'loyalty' of the people.

Seriously.

This tax on Sin Sot has got the missus and her friends in stitches.
They've never heard of a more stupid govt idea.

Clutching at straws.

The end is nigh - we can only hope...

[jonclark]

This type of short term, unsustainable reaction does not inspire confidence in the economy. What are the public not being told. 

 

50 Billion is a big amount of cash, we have hospitals and schools (especially the rural ones) one the verge of collapse, both economically and structurally, and poor old Toon is having to run the length and breadth of the country to raise funds for them, and the government is giving out cash to a population that by and large is up to its neck in debt, and being encouraged to spend more on having a vacation. Utter lunacy!

 

How about making 25 Billion available for people to up skill and retrain through adult education centers and collages?  It is evident that many people especially those who have been out of education for a number of years (mainly farmers and the poor) need new skills and knowledge in order to leverage the opportunities that the 21st century can offer. 

 

A 50 Billion injection of money into the health and education system would yield far better longer term results. In fact betting 50 Billion on a couple of hands of Hi-Low would make more economic sense than this. 

[jonclark]

8 minutes ago, thaiguzzi said:

Seriously.

This tax on Sin Sot has got the missus and her friends in stitches.
They've never heard of a more stupid govt idea.

Clutching at straws.

The end is nigh - we can only hope...

I have to admit i found this hilarious as well. I have been to a number of weddings where the Sin sot was borrowed for the day - The money (and gold) was laid out for all to see during the wedding,as the grooms were poor (and no harm in that) , but once the formalities were over the money and gold were whisked away to its rightful owner.

 

[inactiveposter]

SmartyMarty, you said “running the economy.” Is it a coincidence that with the change of one letter, the word becomes “ruining?”

[GalaxyMan]

18 minutes ago, thaiguzzi said:

Seriously.

This tax on Sin Sot has got the missus and her friends in stitches.
They've never heard of a more stupid govt idea.

Clutching at straws.

The end is nigh - we can only hope...

Mine says that it's only really for the rich who like to show off how much they get on TV and in social media. Normal people will just do it behind the back, as it were, saying that they didn't get/give any money, too poor after paying so many taxes. ????

[ezzra]

So far with all the handouts, grants, freebies and debts moratoriums of current and past governments, Thai people household debts are higher than ever per capita, would this handouts and stimulants will help to eleviet people's wealth? i doubt it very much...

[seajae]

we may well see a lot more drunk drivers on the roads when they start handing this out, with no restrictions I can see a lot of it wasted

 

[madmitch]

1 hour ago, Eric Loh said:

Why don’t the government just raise minimum wage instead of temporary fixes that will just kick the problem down the road. 

The minimum wage means nothing. The Government admitted the other day the 40% of the population earns less than 6000 baht a month. These are probably self-employed farmers and their families, who double as staff. An increase in the minimum wage won't help these people.

[neeray]

1 hour ago, GalaxyMan said:

The government is desperate for money, constantly inventing and raising taxes. Beginning in September, there is a 5% tax on the money gifts that Thais receive at weddings, birthdays, etc. Seems like another cheap way to try to buy the 'loyalty' of the people.

I don't quite see how taking 5% of a gift is going to buy any loyalty.

But it might buy some more disdain.

 

And after sending half to an offshore account, that only leaves 2.5%.

[ratcatcher]

51 minutes ago, jonclark said:

I have to admit i found this hilarious as well. I have been to a number of weddings where the Sin sot was borrowed for the day - The money (and gold) was laid out for all to see during the wedding,as the grooms were poor (and no harm in that) , but once the formalities were over the money and gold were whisked away to its rightful owner.

 

There is no mention of "Sin Sot" being taxed, it concerns the cash that wedding guests traditionally place in white envelopes and hand over to the wedding couple. This sometimes amounts to many thousands of baht. If a tax on Sin Sot was being proposed, the screams from the hi-sos would be loud and clear as they lay out millions of baht at their fancy weddings.

[Eric Loh]

39 minutes ago, madmitch said:

The minimum wage means nothing. The Government admitted the other day the 40% of the population earns less than 6000 baht a month. These are probably self-employed farmers and their families, who double as staff. An increase in the minimum wage won't help these people.

The self-employed is actually higher and growing and is now 50% of the entire workforce. The increase in minimum wage will do couple of things - attract more of this group of informal workers back into the employed workforce and the higher wages will provide a trickle down economics and stimulate the domestic consumption which will benefit those self-employed. Don't claimed that wage increase is the only fiscal tool that the government can use; there are quite a few that can provide structural reform and not temporary fixes like stimulus package.  

[PatOngo]

1 hour ago, ezzra said:

So far with all the handouts, grants, freebies and debts moratoriums of current and past governments, Thai people household debts are higher than ever per capita, would this handouts and stimulants will help to eleviet people's wealth? i doubt it very much...

It will get them a deposit for a new iPhone or Honda Wave though!

[Oziex1]

2 hours ago, RotBenz8888 said:

Desperation more evident by the day.

Desperation and a display of ignorance in economic management. 

Get the Thai people involved in major infrastructure projects, not Chinese or workers from surrounding countries.

[marko kok prong]

Ye Gods more massive cues at the Krung Thai bank.

[harada]

From what I've seen around my wife's community right now the majority of it ( if not all ) will be use to pay off loan sharks.

[GalaxyMan]

1 hour ago, neeray said:

I don't quite see how taking 5% of a gift is going to buy any loyalty.

But it might buy some more disdain.

 

And after sending half to an offshore account, that only leaves 2.5%.

Sorry, that was poorly written by me. I was referring to the new, proposed government handout to the poor, traditionally Thaksin's base, trying to buy their loyalty. The new 5% tax was just an example of how the government is desperate for money to give away to people who won't 'vote' for them. Or maybe they'll just stick to buying submarines and other sundry military hardware for all of the wars that they have defending the country.