Ailing economy to get ‘Bt100bn injection’ from Oct-Dec

[webfact]

Ailing economy to get ‘Bt100bn injection’ from Oct-Dec

By The Nation

 

Deputy Prime Minister Supattanapong Punmeechaow

 

Government stimulus schemes are expected to inject Bt100 billion into the economy in the last three months of this year, Deputy Prime Minister Supattanapong Punmeechaow told the Krungthep Turakit newspaper.

 

The Bt100-billion injection will come both from government spending and from people’s spending under three stimulus measures.

 

Under the first measure, 14 million welfare cardholders will receive an extra monthly discount of Bt500 from October to December on their shopping. The budget for this scheme is Bt21 billion.

 

Meanwhile under the “Kon La Khreung” (Let’s Go Halves) measure, 10 million people will get daily discounts of up to B100 on food, beverages and household essentials (not including alcohol, tobacco or lottery tickets). The subsidy is capped at Bt,3000 per person. 

 

The Cabinet has given the green light to both schemes.

 

Supattanapong said the third measure will serve wealthier citizens with tax incentives to encourage them to spend.

 

Meanwhile on Tuesday the Cabinet approved a budget of Bt19.5 billion to help the private sector hire 260,000 new graduates by paying half their salaries.

 

Supattanapong, who also serves as Energy Minister, predicted the economy would improve next year but said it might be two years before Thailand's economic growth returns to its pre-coronavirus level.

 

He said the country's existing budget would be enough to boost the economy provided there is no second wave of Covid-19. However, given uncertainty caused by the pandemic, the government stands ready to borrow more if necessary, since Thailand's current debt is not high compared to other countries.

 

He added that the government was proceeding with utmost caution in budget spending in order to stay financially healthy in the post-outbreak era.

 

Source: https://www.nationthailand.com/business/30395085

 

-- © Copyright The Nation Thailand 2020-09-25

 

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[Justgrazing]

38 minutes ago, webfact said:

provided there is no second wave of Covid-19

wrong hymn sheet .. 

[RichardColeman]

54 minutes ago, webfact said:

Government stimulus schemes are expected to inject Bt100 billion into the economy in the last three months of this year

They should be planning on the first 3 months of next year, and then the devastation of 3 million unemployed after no high season as they continue to ban tourism

[torturedsole]

I'd be reassured if stimulus funds did indeed immediately feed the impoverished. I'm just not so sure these measures will materialise in any meaningful way.      

[donnacha]

2 hours ago, webfact said:

Supattanapong, who also serves as Energy Minister, predicted the economy would improve next year but said it might be two years before Thailand's economic growth returns to its pre-coronavirus level.

Two years? This reveals a serious inability to grasp what is happening.

Even if an effective vaccine emerges, and that's a big "if", even the most advanced economies are going to be struggling for at least the next five years.

Those advanced countries have varied, flexible, well-regulated economies and mostly well-educated workforces that can shift easily enough between industries. None of them have a major reliance on tourism or any other single industry.

Thailand, on the other hand, has been able to become increasingly sloppy over the past half-century because the easy money of mass tourism, and related services, kept foreign currency flooding in and kept the unskilled parts of their workforce employed.

All of that has now evaporated and the knock-on effects will be felt by every business and family in the kingdom. I recognize the resilience of Thai people but a sudden vacuum of this size is unprecedented in any modern economy.

I don't see how this can do anything but domino the weaknesses that we were all painfully aware of before Covid:

 

1. Ridiculous levels of personal debt and generally poor money management skills.
2. Banks that would be insolvent by any Western measure.
3. A culture that favors seniority over ability and actively penalizes innovation.
4. Massive and completely unnecessary military spending that they are now contractually committed to for years to come.
5. A huge poor class with a woefully insufficient safety net.
6. An elite who throw a fit anytime schemes are suggested that might slightly alleviate the difficulties of the poor. 
7. An education system that makes students dumber than when they started.
8. Increasing automation undercutting Thailand's niche as manufacturer and exporter of high tech goods such as plastic buckets.
9. Nearby ASEAN competitors such as Vietnam catching up with and surpassing Thailand.
10. A determination to throw away their existing, remarkably consistent Western mass tourism trade, organically grown over half-a-century, in favor of five-star Indian and Chinese millionaires who may or may not exist.
11. Tens of millions of people in the north subjected to unprecedented levels of air pollution, already suffering one of the world's highest levels of lung cancer and likely to develop high levels of other, similarly expensive conditions.
12. The recent loss of a much-loved king who was a unifying figure, showing wisdom and some level of compassion for the people.

Two years my @rse. Thailand's economy growth won't return to its pre-coronavirus level anytime this decade.

 

Edited September 24, 2020 by donnacha

[baansgr]

Pretty much what other Governments worldwide are doing. I read we also have a 4 day weekend in Nov and Dec. Credit where credit is due

[AbeNormal]

normally it's "Were there's a will there's a way"

 

In Thailand "Were there's a budget there's a way"

[bloodyholly]

8 hours ago, donnacha said:

Two years? This reveals a serious inability to grasp what is happening.

Even if an effective vaccine emerges, and that's a big "if", even the most advanced economies are going to be struggling for at least the next five years.

Those advanced countries have varied, flexible, well-regulated economies and mostly well-educated workforces that can shift easily enough between industries. None of them have a major reliance on tourism or any other single industry.

Thailand, on the other hand, has been able to become increasingly sloppy over the past half-century because the easy money of mass tourism, and related services, kept foreign currency flooding in and kept the unskilled parts of their workforce employed.

All of that has now evaporated and the knock-on effects will be felt by every business and family in the kingdom. I recognize the resilience of Thai people but a sudden vacuum of this size is unprecedented in any modern economy.

I don't see how this can do anything but domino the weaknesses that we were all painfully aware of before Covid:

 

1. Ridiculous levels of personal debt and generally poor money management skills.
2. Banks that would be insolvent by any Western measure.
3. A culture that favors seniority over ability and actively penalizes innovation.
4. Massive and completely unnecessary military spending that they are now contractually committed to for years to come.
5. A huge poor class with a woefully insufficient safety net.
6. An elite who throw a fit anytime schemes are suggested that might slightly alleviate the difficulties of the poor. 
7. An education system that makes students dumber than when they started.
8. Increasing automation undercutting Thailand's niche as manufacturer and exporter of high tech goods such as plastic buckets.
9. Nearby ASEAN competitors such as Vietnam catching up with and surpassing Thailand.
10. A determination to throw away their existing, remarkably consistent Western mass tourism trade, organically grown over half-a-century, in favor of five-star Indian and Chinese millionaires who may or may not exist.
11. Tens of millions of people in the north subjected to unprecedented levels of air pollution, already suffering one of the world's highest levels of lung cancer and likely to develop high levels of other, similarly expensive conditions.
12. The recent loss of a much-loved king who was a unifying figure, showing wisdom and some level of compassion for the people.

Two years my @rse. Thailand's economy growth won't return to its pre-coronavirus level anytime this decade.

 

Succinctly put

[Alex80]

So actually 79 millions out of 100 goes to wealthy people... good job.