As 2021 comes to a close, it has become a tradition that the Prayut Chan-o-cha government issues New Year's gifts to the people.
Last week, Gen Prayut ordered all ministries to prepare New Year's gifts for the people (which are ultimately paid for by the public) and have them ready for cabinet approval on Dec 21. Several agencies have brushed up their routines, adding extras or offering certain freebies for public services. Many other "gifts" are just short-term measures that are not productive and will have no long-term impact.
Typically, several ministries offer the same old freebies that they handed out last year -- such as waivers or discounts on fees and fares of services.
The Ministry of Transport probably will again offer reduced expressway fees and cheaper tickets for electric trains and boat transport. The Ministry of Energy will likely do similar with reduced electricity and fuel prices.
The Interior Ministry probably will offer interest rate cuts for pawnshops under its care while the Ministry of Natural Resources and Environment is expected to offer free admission to national parks and state-run zoos. And, the Ministry of Finance is anticipated to hand out cash to state-welfare cardholders.
The New Year's gifts will be subsidised by the state budget, if not from borrowing. The government recently raised its public debt ceiling to accommodate further borrowing and spending to help support the post-pandemic economic recovery.
The limit on the debt-to-gross domestic product ratio has been increased from 60% to 70% to allow the government to do so.
As the public debt is a burden on the taxpayer, it should be prudently utilised and, importantly, not used as a means to acquire political popularity.
The idea of giving New Year's gifts to people is fine, but during a time of economic hardship, it would be much better if the government focused on gifts that had long-term impacts instead of short-term gimmicks.
In fact, the people need gifts from certain ministries, particularly the Ministry of Finance, that would provide the nation with much needed economic stimulus.
State budgets and loans should be used to support much needed economic recovery and people's wellbeing.
Finance Minister Arkhom Termpittayapaisith said on Friday that his ministry plans to introduce new stimulus packages early next year as a New Year's gift to Thais, aiming to boost spending by those with high purchasing power.
With a current sluggish economy due to prolong pandemic, further economic stimulus is sorely in need.
He said one package would focus on offering a tax deduction to those with purchasing power.
It will replace the existing Ying Chai Ying Dai (the more you spend, the more you get) stimulus scheme, which was not popular among the public.
The Ying Chai Ying Dai scheme provided users with cashback e-vouchers for domestic purchases, encouraging the buying of food, products and services.
One measure that should be reintroduced is the Shop Dee Mee Kuen (shop and payback) programme.
It was introduced for some two months last year and led to a boost of 100 billion baht in local spending.
A proposal concerning a package of tax incentives for shoppers is also worth a look, as it would likewise help boost local spending.
Such measures would be much more worthwhile than many of the gifts to be introduced by several ministries for the New Year.
