Thailand’s Ministry of Finance plans to launch a new phase of the co-payment system

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The Ministry of Finance is currently working on a possible launch of a 5th phase of the 50/50 co-payment system, aimed at easing the financial burden of the rising cost of living.

Finance Permanent Secretary Krisada Chinavicharana said yesterday (Thursday) that they are expecting a report on revenue collection in April and are also assessing the impacts of the program on the fiscal situation if it is launched.

Of the 500 billion baht loan, secured by the executive decree on loans, 70 billion baht remains, but he said he was concerned that this would not be enough and that a new loan would be needed.

Nonetheless, he said the finance ministry would get a clearer picture of the country’s fiscal situation after receiving revenue collection details for April, expected this week.

The amount of money to be paid to subscribers of the program has not yet been discussed by the Ministry of Finance, but the Thai Chamber of Commerce has proposed that it be between 1,200 and 1,500 baht per capita for a period of three months.

The 1st phase of the co-payment system lasted from July 23rd,2020 until the end of December. About six million people have subscribed to the scheme. The number of subscribers soared to around 28 million during the 4th phase, which was rolled out in February and ended at the end of last month. Each received 1,200 baht to spend for three months.

The populist program has been well received by both consumers and sellers who have joined the program, as it has helped to increase consumers’ purchasing power, albeit slightly, and to stimulate the slow economic recovery.

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