Thailand's cabinet approved a 200 billion baht borrowing, to be raised in stages through term loans and promissory notes, to bolster a consumer subsidy plan, Reuters reported Tuesday.
The move comes to counter a rising cost of living resulting from the uncertainty related to the Middle East conflict, the newswire reported citing Finance Minister Ekniti Nitithanprapas.
The scheme will offer 1,000 baht each to around 43 million people from June to September, Reuters said citing the finance ministry's permanent secretary Lavaron Sangsnit.
Various consumer goods will be subsidized at 60% of their price, with a cap of 200 baht per day.
Following the borrowing, the country's public debt-to-GDP ratio will rise to around 68% by the end of the four months, lower than the 70% ceiling, head of the Public Debt Management Office, Jindarat Viriyataveekul, told Reuters.
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