Bangkok (VNA) – The Finance Ministry of Thailand will propose extra fiscal measures to boost the domestic economy that has been adversely affected by falling exports.
The Finance Ministry of Thailand will propose extra fiscal measures to boost the domestic economy that has been adversely affected by falling exports (Photo: www.nationmultimedia.com)
Director-general at the Thai Fiscal Policy Office Lavaron Sangsnit on June 4 said officials of the ministry have been working to come up with a stimulus package, as the Thai economy is projected to slow down in the second half of this year.
The stimulus package will be aimed at boosting consumption among low-income groups as they have a tendency to spend all the money that government puts into the economic lifeline, he said.
The ministry will also offer tax incentives to the middle-income group in order to encourage them to spend more. Usually, the middle-income group in Thailand spends about 80 percent of their earnings.
Lavaron’s comments came amid a slowdown in the Thai economy due to the impact of the trade tensions between the US and China. Thai exports in the first four months of this year contracted by 1.9 percent year-on-year.
The Finance Ministry projects that trade tensions between the world’s two largest economies would ease as leaders of the US and China will meet at the G20 summit, which is slated later this month in Osaka, Japan.-/.