Thailand injects additional stimulus to shield economy amid ongoing energy crisis

BANGKOK, Sept. 22 (Xinhua) -- Thailand's cabinet approved a new round of economic relief measures on Tuesday, utilizing up to 42.69 billion baht (about 1.28 billion U.S. dollars) from the emergency loan decree to navigate a prolonged global energy crisis.

Thai Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas said the ongoing Middle East conflict has driven up global oil prices, causing domestic inflation to reach 2.5 percent and the producer price index to rise by nearly 10 percent.

Speaking at a press conference, Ekniti noted that the three waves of economic headwinds, following spikes in energy prices and living costs alongside sluggish household spending, have necessitated government intervention to further protect the public.

According to the Ministry of Finance, the relief package is divided into two primary initiatives designed to sustain purchasing power and cover approximately 47 million eligible Thais.

Low-income holders of state welfare cards will receive a 1,000-baht allocation for October, up from the usual 300 baht a month.

The co-payment scheme will be extended through November, with the government subsidizing 60 percent of eligible purchases for food, beverages, and services, capped at 200 baht per day and 1,000 baht per person, to assist the broader public and maintain cash flow for small businesses.

Ekniti said the necessary funding is drawn from the existing emergency loan allocation, assuring that the spending strictly adheres to the nation's fiscal discipline framework and preserves the financial stability required to maintain the confidence of international credit rating agencies.