Bangkok, Dec 24 (IANS) - The Thai cabinet has approved significant economic relief measures aimed at lifting the financial burden on its citizens and stimulating economic growth. Among the notable initiatives are increases to the minimum wage, cash handouts for seniors, and new tax breaks set to begin next month.
Prime Minister Paetongtarn Shinawatra announced these measures during a press conference on Tuesday, detailing how the government plans to raise daily wages by two percent on average. The new daily wage will range from 337 to 400 baht (approximately $9.86 to $11.71), varying by region, and is effective from January 1, 2024.
The highest wage rate will be enacted on popular resort islands such as Phuket and Samui, as well as provinces within the Eastern Economic Corridor, including Chonburi, Rayong, and Chachoengsao. This adjustment aims to help the workforce cope with rising living costs and inflation.
According to Prime Minister Shinawatra, the cabinet also approved the second phase of the cash handout program targeted at senior citizens. Nearly four million citizens aged 60 and older will receive 10,000 baht (about $292) each by the end of January. This follows the first phase launched in September, which had already benefited around 14.55 million underprivileged individuals by distributing 145.5 billion baht (around $4.26 billion).
"We are committed to supporting our seniors and ensuring they have the financial resources they need," said Shinawatra, emphasizing the government's promise to uplift those most affected by the economic climate.
With around 36 million Thais already registered for this handout scheme, which is part of the Pheu Thai Party's campaign platform, the government aims to broaden its reach to 45 million recipients by the end.
Besides wage increases and cash handouts, the cabinet approved tax deductions of up to 50,000 baht (around $1,464) for consumers as part of its strategy to spur economic activity and drive spending. These deductions will be applicable to specific purchases, expected to run from January 16 to February 28, excluding domestic travel-related expenses.
Deputy Finance Minister Julapun Amornvivat remarked, "The tax breaks are targeted to ignite consumer spending and support the economic recovery during the early months of 2024." He confirmed this strategy follows the government's commitment to maintaining inflation levels between 1% and 3% until 2025, aligning with the recent stipulations set by both the Ministry of Finance and the Bank of Thailand.
Despite national inflation averaging only 0.32% for the first 11 months of the year, the cabinet remains focused on maintaining financial momentum. The Bank of Thailand has kept interest rates steady at 2.25%, resisting calls to lower borrowing costs to encourage spending.
Shinawatra also expressed optimism for economic growth, targeting more than 3% growth next year. “We're hopeful our initiatives will reciprocate positive changes within our economy and yield beneficial outcomes for everyday people,” she stated.
The rollout of these measures signals the government’s responsive approach to growing economic pressures faced by its citizens, driven largely by the aftermath of the COVID-19 pandemic and the global economic climate.
Overall, this multifaceted approach, combining wage increases, direct financial assistance to vulnerable citizens, and consumption incentives, seeks to not only create immediate relief but also encourage long-term economic resilience.
