(Bloomberg) -- Thailand unveiled stimulus programs including cash handouts worth 210 billion baht ($7 billion) to support millions of individuals and businesses affected by the country’s biggest wave of coronavirus infections since the pandemic began a year ago.
The government plans to distribute cash to about 30 million people, mostly informal sector workers and farmers, who are hit by curbs on businesses and movement, according to Danucha Pichayanan, secretary general of the National Economic and Social Development Council. Under the plan, each beneficiary will receive 3,500 baht per month for two months starting as early as February, Finance Minister Arkhom Termpittayapaisith said at a briefing in Bangkok Tuesday.
The cabinet may approve the proposal next Tuesday when it may also consider extending state-funded programs to boost domestic spending and tourism after current curbs are lifted, Arkhom said. The government has about 209 billion baht to meet the additional expenses and can also draw from 260 billion baht surplus from another program to support fresh stimulus, Danucha said.
Thailand is grappling with the resurgence of the outbreak that’s more than doubled the nation’s total case count to nearly 11,000. The government has so far refrained from imposing a broad lockdown that was used during the first outbreak early last year in an effort to minimize the impact on the economy. Instead, it has placed restrictions on businesses and travels depending on the severity of the outbreak in each region.
But some health experts and analysts have warned looser restrictions could mean it would take longer to contain the virus, with more than 200 cases added daily over the past week. Deputy Prime Minister Supattanapong Punmeechaow said the government expects to contain the outbreak by the end of March.
Details of other stimulus steps unveiled include:
- Reduction in electricity and water bills for two months that will help around 23.7 million users mainly small businesses and low-income households
- Extension of various concessions offered to borrowers by state banks; seven state banks have 268 billion baht available to lend to those affected groups
- Reduction in land and building taxes by 90% for another year to relieve people’s burden