Bangkok: The Cabinet has sanctioned the "Thai Helps Thai Plus" program with a budget allocation of 176 billion baht, aiming to mitigate the high cost of living crisis that has gripped the nation over the past four months. This initiative will extend aid to vulnerable groups by increasing their state welfare card benefits by 700 baht.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance Mr. Ekniti Nitithanprapas, alongside Mr. Lavaron Saengsnit, Permanent Secretary of the Ministry of Finance, and Mr. Payong Srivanich, President and CEO of Krung Thai Bank Public Company Limited, announced the Cabinet's endorsement of the "Thai Helps Thai Plus: Overcoming the Crisis Together" project. This project addresses the escalating cost of living due to the ongoing energy crisis affecting both Thailand and other nations globally. The country is currently experiencing successive waves of crises, beginning with rising prices and followed by increased costs. Measures were initiated on April 11th to help alleviate the impact on targeted groups such as farmers and transporters. Now, with the third wave, the crisis of high prices of goods and services looms, with a significant risk of inflation if not controlled. Without intervention, the rising prices will lead to reduced purchasing power, dwindling income, and increased business co sts, severely affecting low-income citizens and small businesses that are already struggling. Thus, the "Thai Helps Thai Plus" project is critical for maintaining economic stability and supporting citizens and small businesses.
To tackle the impact of rising living costs, the project has identified three main strategies:
1. Enhanced state welfare programs for low-income and vulnerable groups, increasing the monthly payment from 300 baht to 1,000 baht. This initiative, which initially covered 13.2 million people, encountered delays. The Ministry of Finance and the Ministry of Interior are compiling data to reopen registration and include more vulnerable groups, requiring a total budget of 56,000 million baht.
2. Measures to assist the middle class, working individuals, and salaried employees in managing rising living costs, encouraging reduced spending. This involves a cost-sharing approach where the public pays 40% and the government covers 60%. The focus is on reducing daily living expenses by providing 1,000 baht per month for four months, necessitating a budget of 120,000 million baht.
3. Support for small retailers, ensuring that every expenditure benefits both consumers and small businesses. The aim is to inject liquidity and provide a lifeline to help these businesses survive, thereby justifying the "Thai Helps Thai Plus" project's name.
Additionally, AI technology will be leveraged to train businesses in more effective cost management. Businesses will have the ability to verify cost prices with the Ministry of Commerce, enhancing their expense management capabilities. This initiative will also aid small business owners in gaining better access to formal financial institutions, reducing reliance on informal lending sources.