Thais are queuing to register at a travel promotion event in the capital city of Bangkok. (Photo: VNA)Bangkok (VNA) – The Thai cabinet has approved astimulus package worth 400 billion THB (over 12.7 billion USD) to soften the blowof the COVID-19 outbreak on the local economy.
Thai Prime Minister Prayut Chan-o-cha said on March 10 thepackage was a first-phase measure that could be followed by second-phase actionif the impact persists.
Finance Minister Uttama Savanayana expressed confidence thatthe stimulus package will provide conditions for the public and businesses toget over the impact of the virus.
According to the Thai Finance Ministry, the package will benefit14.6 million low-income earners who account for 22 percent of the population, atotal of 50,000 village funds nationwide, 7.2 million farming households (30percent of all households nationwide) and 3 million small-and-medium-sizedenterprises (SMEs) or 99 percent of all businesses.
The package is expected to create 14 million jobs or about85 percent of the total nationwide.
On the same day, the Thai Cabinet agreed with a proposal by theBudget Bureau to mitigate the impact of COVID-19 and the severe drought on the economy.
The proposal suggests all government agencies need to lowertheir budget spending by 10 percent and consider procuring durable goods fromdomestic manufacturers.
The Budget Bureau said that a 10 percent reduction in currentexpenditures would amount to 200 billion THB (6.35 billion USD) of the 2020annual expenditure budget of 2.39 trillion THB (75.9 billion USD).
The Cabinet also announced a policy to reduce investment indurable goods with a credit limit of less than 1 million THB (31,770 USD) orbuildings with a credit limit of less than 10 million THB (317,702 USD).
Meanwhile, Government agencies have been asked to reconsider officialoverseas travel plans for conferences, seminars, and workshops.
In the wake of the global spread of the novel coronavirus, economistshave downgraded Thai economic growth projections. The Research Centre slashedits forecast for the country's GDP growth this year to 0.5 percent on theexpectation that the outbreak will wipe 410 billion THB off tourism receipts./.
