Bangkok (VNA) – The Thai cabinet has approved a large-scale emergency relief package aimed at curbing inflation, protecting small and medium-sized enterprises (SMEs), and strengthening energy security amid escalating conflicts in the Middle East that threaten growth.
The Thai Government has allocated more than 7.74 billion THB (about 241 million USD) from the central budget to support citizens in coping with rising energy prices, subsidise transport costs, and implement measures to reduce the cost of living nationwide.
The package is designed to prevent stagflation by balancing direct government subsidies with a large-scale credit injection into the industrial sector, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said in an announcement on April 11.
To ease the rising cost of living, the Government will increase monthly allowances for 13.22 million state welfare cardholders, raising the spending limit for essential goods from 300 THB to 400 THB per month, effective from April 13.
The Ministry of Finance is also leveraging state-owned banks to promote energy independence. The Government Savings Bank (GSB) will establish a 5-billion-THB preferential loan fund for households to install solar panels or purchase electric vehicles (EVs), with a loan cap of 2 million THB per person. Meanwhile, the Government Housing Bank (GHB) will offer “Green Home” mortgage loans at a low interest rate of 2.2%.
To manage the energy price surge, the cabinet has earmarked over 2 billion THB in fuel subsidies for lorries and public transport for 42 days, along with a 200-million-THB package to reduce public transport fares during the Songkran festival. In addition, Industry Minister Varawut Silpa-archa announced a 20-billion-THB support package to assist SMEs facing rising operating costs.
Furthermore, the cabinet has instructed all government agencies to tighten spending by cancelling international study trips and replacing them with domestic alternatives. Public sector employees are also encouraged to work from home to help reduce energy consumption during the crisis./.
