Economy
Chiang Mai University Poll: Government Subsidy Schemes Fail to Stimulate New Spending
A recent survey indicates that while government subsidy programs are helping residents manage living costs, they are failing to drive new economic consumption.
A survey conducted by Chiang Mai University has evaluated the effectiveness of the government's 'Kon La Khrueng Plus' and 'Thai Chuay Thai Plus' subsidy schemes. The findings suggest that while these initiatives have successfully helped citizens manage their daily living expenses, they have not succeeded in stimulating new consumer spending.
According to the report, the public has entered a 'defense mode,' prioritizing essential savings over discretionary purchases. Furthermore, the survey highlights concerns among the business community, noting that 56% of participating merchants are worried about potential retroactive tax audits. Private sector analysts have also criticized the 24-billion-baht budget allocated for these programs, arguing that the economic impact is short-lived, lasting only about 10 days. Experts are now recommending that the government revise its economic strategy to better encourage sustainable spending.
For residents and expatriates, these findings reflect a cautious economic climate where government support is viewed as a temporary relief rather than a catalyst for growth. It remains to be confirmed whether the government will adjust its fiscal policies or introduce new measures to address the concerns raised by both the public and the business sector regarding tax transparency and long-term economic stimulation.
