Govt plans Q4 GDP boost

Co-payment scheme seen as pivotal

- WICHIT CHANTANUSORNSIRI

The government's "Khon La Khrueng Plus" co-payment scheme, worth 44 billion baht, is expected to bolster GDP in the fourth quarter, said Finance Minister Ekniti Nitithanprapas.

The cabinet yesterday approved the budget for the scheme, which will be effective from Oct 29 until the end of this year, with the aim of preventing the economy from becoming trapped in contraction in the current quarter, the minister said.

Mr Ekniti, also a deputy prime minister, said the cabinet's approval of the scheme reflects the government's policy as declared to parliament, and recognises the urgent need to stimulate the economy.

The scheme is intended to increase household income and reduce expenditures, thereby enhancing people's purchasing power for everyday consumption, he said.

This is especially important as the Thai economy faces a risk of contraction and slowdown in the fourth quarter.