Thailand
Thailand: Cash giveaways for relief ruled out
New relief measures for employees and self-employed workers ravaged by the coronavirus pandemic include soft loans with payment on principal and interest suspended for six months, but not cash giveaways, says a senior official at the Finance Ministry.
Cash handouts are inappropriate at the moment and the budget is being spread thin, said finance permanent secretary Prasong Poontaneat.
The ministry is proposing soft loans with a six-month grace period for both principal and interest for those affected by the outbreak.
The loan is effective for identifying those in dire need of money, as those with sufficient funds will not take out loans, Mr Prasong said.
A cash handout could also be used by segments that have not been hit by the pandemic — an inefficient use of the budget, he said.
The ministry earlier this month scrapped proposed “cash gifts” for low-income earners to help cushion the blow from the pandemic after strong criticism.
The Energy Ministry has proposed returning home electricity meter deposits to 21 million households and a temporary reduction in electricity rates.
The government has adopted various relief measures to support tourism in other sectors, such as extending the income-tax return deadline from March to June 2020 and additional tax deductions.
The government recently approved an estimated 400-billion-baht stimulus package, which includes soft loans worth 150 billion baht for small and medium-sized enterprises to alleviate the impact of the pandemic on the slowing economy.
Mr Prasong said the ministry is considering the details of setting up a stabilisation fund.
The government will not use tax revenues to finance the fund, which is aimed at stabilising the stock market, but the Vayupak Fund could be used at a 3% return rate from investment in the fund to mobilise capital, he said.
Attractive returns would help depositors in the low-rate environment, Mr Prasong said.
A ministry source who requested anonymity said the second phase of relief measures is expected to go before the economic cabinet tomorrow.
Measures under the new package are similar to previous ones, including tax payment deadline delays, liquidity for business operators and financial assistance to those affected by coronavirus infection.
For the stabilisation fund, the source said discussions indicate that the fund will be worth 100 billion baht.
Source: https://www.bangkokpost.com/business/1881680/cash-giveaways-for-relief-ruled-out