Thailand's cabinet has agreed to extend measures to help low-income Thais for two months to February and most producers have agreed to maintain prices of consumer goods to the end of March, ministers said on Tuesday. The extended subsidies are expected to cost about 3.1 billion baht ($103 million), Finance Minister Korn Chatikavanij told reporters after a weekly cabinet meeting.
These subsidies were introduced by a previous government and have been extended several times by Prime Minister Abhisit Vejjajiva's government to help ease living costs. They include free or subsidised electricity and public transport. Korn said last week Abhisit could announce new measures in early January based on findings from a working group set up to look at problems associated with living costs, the black economy and the safety of people and property.
Steps to address the wide income gap between Thailand's rich and poor are part of a government reconciliation effort aimed at healing divisions and ending the political strife that has raised fears for the future of Southeast Asia's second-biggest economy.
Commerce Minister Porntiva Nakasai said that 90 percent of business operators, mostly producers of consumer goods, had indicated they would maintain prices for another three months to support consumption.