Thailand Extends Help for Low Earners, UPS Bond
Savings bond increased by 30 billion baht to 80 billion
Thailand's Government agreed on Tuesday to extend relief measures for five months to help poorer workers cope with hardship caused by the economic crisis and increased the size of a savings bond to help pay for its stimulus package.
"The extended measures are expected to cost the Government about eleven billion baht ($322 million), which is manageable," Finance Minister Korn Chatikavanij told reporters after a weekly cabinet meeting.
The government will provide free water and electricity, plus subsidised bus and train rides, for Thais with low incomes until the end of the year.
Korn said his ministry would also propose to the cabinet to reduce taxes on deposits to help savers. He did not elaborate.
The Government, which took office in December, has focused on reviving the economy, which is going through its first recession in a decade.
The Finance Ministry has projected the economy would shrink 2.5 - 3.5 percent this year, the weakest performance since the 1997 / 1998 Asian financial crisis.
The Government introduced several economic measures in the first half and is now seeking to borrow 800 billion baht to help finance one point four three trillion Baht in stimulus spending and fiscal deficits over the next three years.
It is offering 50 billion Baht of savings bonds, with the first 30 billion Baht tranche sold out within 30 minutes of going on sale on Monday.
Prime Minister Abhisit Vejjajiva told reporters the cabinet had agreed to increase the size of the bond by 30 billion Baht.
Source - Reuters India