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11 Apr 2023

Thai Economy

Fiscal measure via funds transfer (Business Brief No.3998)


       Fiscal tools used by the public sector in tackling economic problems come in many forms. Among these include fiscal measures through the use of taxation, quasi-fiscal measures implemented through specialized financial institutions, and economic stimulus measures via funds transfer or cash handout. The latter is typically used in cases where the economy is adversely affected by external factors such as the global economic crisis and COVID-19. It is also used as a tool in addressing specific problems of vulnerable groups, especially low-income earners and farmers. KResearch has compiled economic stimulus measures implemented by the government over the past years in various forms of funds transfer and cash handout in line with the prevailing economic conditions, including their varying reasons and requirements, such as  the Pracharat Fund for the Grass-root Economy and Society and ‘Rao Mai Thing Kan’  (No One Left Behind) program.
       Meanwhile, the Thai economy is set to bounce back quickly in 2023. However, the rebound may not be seen across all sectors amid increased external risks, including the global economic downturn and intensifying geopolitical issues, which may affect the path of the Thai economic recovery ahead. Therefore, economic stimulus measures may still be needed if the Thai economy does not recover as fast as anticipated in 2023. While economic stimulus policies announced by political parties are intended to win votes from their supporters at the upcoming general elections on May 14, they have been the subject of widespread debate. Eventually, whether such policies will be implemented or not depend on the election results and which party will be able to form the government. The impacts of new economic measures implemented by the upcoming government, particularly the funds transfer measure must take into account the amount per recipient and other conditions such as funding sources and the country’s fiscal position.