Fiscal Policy Country Blog

Example 1: 

Expansionary Fiscal Policy - $1.3 billion in stimulus package in 2021

Thailand is granted this stimulus to people located in the providences that were affected by Covid 19. This stimulus will include some for subsidies for water and electricity bills, and the rest for direct cash handouts to people. Workers in certain fields such as construction, hotel and food service, etc, will receive addition stimulus. In 2019 Thailand tourism contributed to 20% of GDP so with this shut down the economy is struggling (Medina). 

This stimulus package is benefiting people who work in industries severly struggling from the pandemic if they are registered with the social security scheme. This money is an attempt to lessen the devestating effects and make conditions more liveable. 

I cannot find any specific examples of people against this, but I can imagine people who were not affected as bad may be frusturated thinking it is unfair people are getting utility discounts and the other benefits. There are protestors in Thailand calling for the resignation of the Prime Minister. They are disappointed at the way he handled the pandemic and how long it took for stimulus packages to come (Pookasook).

Example 2: 

Expansionary Fiscal Policy - Tax Cuts

Thailand has issued a pandemic relife package with up to 90% in land and building tax for 2021. This can apply to businesses, households and workers. In addition banks are being encouraged to give out more loans and people are receiving an addition $154 per month in handouts. 

Giving out money and cutting taxes hoping people will spend money to end the huge economic recession. While most middle or low class citizen will be for these tax cuts, they will probably be against them for the ultra rich. Thailand is home to 52 billionaires and I find it hard to picture the public being content with them getting tax cuts, especially when many have profited from the pandemic. 
                                                


From 2016 to 2019 government debt was somewhat low staying between 40.8-41.8% of GDP. However in 2020, this number rose quickly coming to 50.5%. The government is having to spend money on stimulus, while not making as much because of tax cuts, but they are doing it because they believe it is the right thing to boost the economy. Although the debt is higher than it has been, I would expect as things began to settle down, and taxes can rise again this debt will fall and the economy will become more stable. 



Works Cited

Duangdee, Vigitra. "Tax Hike on Rich May Be Needed to Pay Thailand's Pandemic Debt, World Bank Says" VoA news. 15 July 2021. Web. 

https://www.voanews.com/east-asia-pacific/tax-hike-rich-may-be-needed-pay-thailands-pandemic-debt-world-bank-says

Medina, Ayman Falak. "Thailand Issues Lates US$1.3 Billion Stimulus Package" ASEAN Briefing. 5 August 2021. Web. 

https://www.aseanbriefing.com/news/thailand-issues-latest-us1-3-billion-stimulus-package/

Medina, Ayman Falak. "Thailand’s Latest Tax Relief Package for Businesses to Reduce Operating Costs." ASEAN Briefing. 5 February 2021. 
https://www.aseanbriefing.com/news/thailands-latest-tax-relief-package-for-businesses-to-reduce-operating-costs/

Pookasook, Arthorn. "Thai Protestors Demand PM Resign Amid Surge in COVID Cases." Reuters. 1 August 2021. Web. 

https://www.reuters.com/world/asia-pacific/thai-protesters-demand-pm-resign-amid-surge-covid-cases-2021-08-01/


Thailand Ministry of Finance. "Thailand Government Debt to GDP." 
https://www.blogger.com/blog/post/edit/5811274296596850624/1295032200617589394

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