The Ministry of Finance will next Monday (November 4) propose to Prime Minister Pethuntarun Shinawatra an economic stimulus package for the last two months of 2024 and a New Year’s gift for the people at the end of the year.
These measures are aimed at further boosting economic growth for the remainder of this year without increasing public debt too much, Director-General for Fiscal Policy and Ministry of Finance Spokesperson Pornchai Teerawet said on Thursday.
The ministry estimates that these measures will allow Thailand to achieve its target economic expansion of 2.7% in 2024 while keeping the fiscal deficit below 3% of gross domestic product (GDP). he said.
In past years, these “New Year’s gifts” have included discounts on fuel prices, highway tolls, and utility bills to encourage public spending and tourism at the end of the year.
Mr. Pornchai said the ministry and the Bank of Thailand (BOT) have a mutual understanding to use both monetary and monetary policy to support economic growth, towards achieving the 3% GDP expansion target in 2025. Ta.
“To avoid problems with future fiscal management, the ministry will shift its focus away from economic stimulus measures that would significantly increase the public debt burden,” he said. “The BOT, on the other hand, will focus on using monetary policy to increase private investment and promote economic expansion.”
Mr. Pornchai added that in contrast to monetary policy, monetary policy often brings immediate results, but its effects only last for a while.
“For example, the full effect of the central bank’s Monetary Policy Committee’s rate cuts earlier this month may not be felt until the first quarter of next year at the latest, and the effects could last six to eight quarters,” he said. said.
