BANGKOK: The Anutin Charnvirakul government unveils urgent economic measures aimed at stimulating spending, increasing local incomes and reducing living costs, alongside addressing farmers’ debt issues.
Central to these plans is the revival of the “Khon La Khrueng” (Let’s Go Halves) shopping subsidy scheme, which was previously successful under Prime Minister General Prayut Chan-o-cha’s administration. The Ministry of Finance has confirmed its readiness to implement the programme.
Under the previous scheme, the government conducted five phases between 2020 and 2022, with a total budget of 234.5 billion baht, helping to alleviate living costs during the Covid-19 lockdowns.
Lavaron Sangsnit, Permanent Secretary of the Finance Ministry, said the ministry is fully prepared to roll out a new phase if the Bhumjaithai-led government formalises the policy.
Technically, the system is ready through the “Pao Tang” app, which managed the previous programme.
The budget for the scheme, if launched after Oct 1, 2025, will come from the 25 billion baht central economic stimulus fund for 2026, with the flexibility to reallocate additional funds if necessary.
Lavaron noted that implementation can proceed quickly, as previously registered merchants who still have the app installed can continue immediately after new registration opens. Specific details, such as target groups or co-payment ratios, will follow government policy, which the platform can accommodate in full.
Experts noted that while the exact economic impact is still difficult to predict, the technical and financial infrastructure is ready to support the scheme.
According to Associate Professor Dr Athiphat Muthitacharoen, at that Faculty of Economics, Chulalongkorn University, the new government faces a four-month window to address urgent economic challenges.
Key priorities include reviving the weak economy, particularly consumer spending affected by lower tourism revenue and cautious public spending, implementing tax measures to accommodate US tariffs and ensuring fiscal efficiency and sustainability, particularly after Moody’s downgraded Thailand’s credit outlook.
Athiphat stressed that the short four-month timeframe is both a limitation and an advantage.
While the government cannot enact policies requiring lengthy legal procedures, it forces prioritisation of initiatives that can deliver rapid, tangible results, such as the successful Let’s Go Halves programme.
However, current conditions differ significantly from the lockdowns period.
The government’s fiscal capacity is limited, with the remaining budget under five billion baht, requiring careful reallocation and strategic planning to ensure Let’s Go Halves 2.0 effectively stimulates the economy under tight financial constraints.
When comparing the Let’s Go Halves scheme with a digital cash handout, it was observed that giving 10,000 baht per person may result in significant leakage of funds and may not sufficiently reach grassroots communities, as much of the money could be spent on imported goods.
In contrast, the Let’s Go Halves scheme has mechanisms that limit spending to small local businesses, providing clearer support to local merchants.
Moreover, adjusting the conditions to improve effectiveness is suggested.
Past studies of the Let’s Go Halves programme indicated a marginal propensity to consume (MPC) of 0.4, meaning that for every one baht given by the government, people spend only 40 satang (one baht = 100 satang). This is relatively low compared with China’s programme, which had an MPC of up to 3.0.
The Chinese method used minimum spending conditions and coupon expiry dates to encourage faster spending.
Therefore, the new government should review and refine the conditions of the Let’s Go Halves scheme, for example introducing minimum spending requirements, such as requiring a minimum of 100 baht per transaction to qualify for the discount and setting expiry dates for discounts, to stimulate prompt consumer spending.
Athiphat said that the government needs to ask itself what the Let’s Go Halves scheme is meant to achieve most effectively, for instance supporting small merchants – if this is the primary goal, the original conditions that focus on small, unregistered businesses remain a strength and should be maintained.
And, stimulating consumption – if this is the target, the government should adjust spending conditions to enhance effectiveness and communicate these changes clearly to the public.
Athiphat added: “Maintaining fiscal stability is crucial, and the government must prioritise this and communicate seriously with international stakeholders to build confidence and avoid another credit rating downgrade.”
Uppatham Nisitsuksacharoen, president of the Business of Creative and Event Management Association, said that following the formation of the new government, the business sector is keen to see measures that stimulate the economy, particularly the revival of Let’s Go Halves scheme.
He noted that this is the only effective way to support Thailand’s struggling economy, but stressed that spending limits should be slightly increased.
The programme should be implemented quickly and cover a wide range of businesses, not just restaurants, extending to tourism, hotels, and other sectors.
Milin Veeraratnaroj, chairman and managing director of Tang Ngee Soon Superstore, a major wholesale and retail operator in Udon Thani, echoed support for reviving the scheme. — The Nation/ANN
