Thailand's finance minister acknowledged constrained fiscal capacity as the government prepares a set of targeted responses to mounting economic pressures. Finance Minister Ekniti Nitithanprapas said on Friday that authorities have "limited ammunition" to address the country's economic problems, and outlined several measures the government is advancing.
Among the initiatives Ekniti identified, the cabinet will approve soft loans intended to support adoption of solar panels. The measure aims to encourage uptake of residential or commercial solar technology by easing financing terms for users, he said.
Officials are also exploring a car trade-in scheme, Ekniti added, without providing implementation details. He said the budget for the next fiscal year will prioritize cuts to unnecessary spending as a means of tightening fiscal discipline while preserving targeted support where needed.
In addition, the finance minister said measures to assist vulnerable groups will be presented at a special cabinet meeting scheduled for Saturday. He described these steps as part of a narrowly focused effort to shield households most at risk from rising costs.
To counter the impact of higher oil prices, the government is planning a borrowing guarantee for an oil subsidy fund, together with other support measures, Ekniti said. The guarantee is intended to underpin the fund's capacity to smooth fuel price changes for consumers and businesses.
Monetary policy has remained steady even as external risks mount. Central Bank Governor Vitai Ratanakorn said on Thursday that the policy rate of 1.00% would be left on hold despite the economic fallout from the war in the Middle East. The governor also set out a range for the economy's outlook this year, saying growth could slow to between 1.3% and 1.7%, while inflation could rise to between 2.5% and 3.5%, with both outcomes dependent on developments in the conflict.
The combined fiscal and monetary posture outlined by senior officials signals a reliance on targeted fiscal interventions and a cautious stance from the central bank amid a narrower set of policy options, according to the statements released by the finance ministry and the central bank.