Prime Minister Srettha Thavisin took to the House floor on Wednesday, expounding on the necessity of sourcing additional budget funds to invigorate the Thai economy. (Photo: Royal Thai Government)
The proposal? A supplementary budget bill suggesting an infusion of 122 billion baht into the 2024 fiscal blueprint. This hefty injection aims to bankroll a rather ambitious digital wallet scheme. Yet, the road to approval is not devoid of bumps—opposition parties have already signaled their intent to oppose, citing legal qualms and potential violations of the State Fiscal and Financial Discipline Act.
Highlighting the urgency, Mr. Srettha emphasized that this fiscal boost is critical for jumpstarting economic activity, sustaining consumer spending, and creating lucrative opportunities for both individuals and businesses. The scheme involves a 10,000 baht digital wallet handout to a sweeping 50 million Thais—a brainchild and flagship policy of the Pheu Thai Party—planned to kick off in October, with registrations opening as early as August 1.
Not one to twiddle his thumbs, Mr. Srettha underscored the necessity of action: “The government can’t afford to wait for the 2025 fiscal budget disbursement starting in October. Hence, an increase of 122 billion baht in the 2024 budget is imperative to fund the handout and address the stagnant economy without delay.”
Delving into the financial specifics, the Prime Minister broke down the funding sources—10 billion baht from tax revenue and a substantial 112 billion from loans. This increase, he noted, would lift investment spending in the 2024 budget from 17.1% to a robust 22.4%. “Rest assured,” he told the House, “The digital wallet expenditure aligns meticulously with the State Fiscal and Financial Discipline Act.”
Projecting an optimistic economic outlook, Mr. Srettha suggested a 2-3% growth for the year, bolstered by increased consumer spending, public investments, a resurgent tourism sector, and healthy export growth. Nonetheless, he did not shy away from acknowledging economic hurdles such as high household and business sector debt, alongside global economic volatility.
On the brighter side, Mr. Srettha assured that Thailand’s financial status remains robust. As of April 30, public debt stood at 63.8% of GDP, and by May 31, the Treasury’s balance was a solid 394 billion baht. “The government remains steadfast in adhering to fiscal and monetary discipline, ensuring that every baht is spent judiciously to stimulate the economy and drive sustainable growth,” he asserted.
On the opposition front, Sirikanya Tansakul, deputy leader of the Move Forward Party, voiced apprehensions. According to her, the supplementary budget request might breach specific clauses of the State Fiscal and Financial Discipline Act. Pointing out a critical legal snag, she noted that the law mandates the disbursement of the additional budget within the fiscal year, i.e., by September 30. Given that the 10,000-baht handout targets the last quarter, she expressed skepticism about the compliance.
Ms. Sirikanya argued that considering the August 1 registration date as the initiation of debt obligations to justify delayed disbursement lacks merit. Moreover, she warned of a potential domino effect: if some agencies find it acceptable to not disburse funds before the fiscal year’s end, they might want to follow suit. She also questioned the classification of the digital wallet scheme as investment spending.
It remains to be seen how this political drama unfolds. Will Prime Minister Srettha’s impassioned plea and detailed financial breakdown sway the House? Or will the opposition’s legal reservations and strategic counterpoints hold the line? One thing’s for sure—the stakes are high, and the nation is watching.
This digital wallet scheme seems like a great way to boost the economy. More money in people’s pockets means more spending and investment in local businesses!
Sounds good on paper, Joe, but where is this money really coming from? Loans? That just puts us in more debt.
@Grower133 Long-term debt can be manageable if it stimulates growth. This could be a calculated risk that pays off.
@Larry Davis Exactly. Sometimes you need to spend money to make money. Plus, high consumer spending could lead to a stronger economy overall.
It’s irresponsible to push this through without ensuring it’s compliant with the State Fiscal and Financial Discipline Act.
Typical response from the opposition. They just want to block anything the current government proposes without offering any real solutions.
@Khun47 The government should be held accountable to the law. If it’s against the act, then it’s a valid concern.
@Khun47 This isn’t about blocking, it’s about ensuring financial discipline. We all should care about the legal framework.
The government needs to act now. Waiting until October for the 2025 budget is not an option.
But acting rashly without proper checks and balances isn’t wise either. Hastened decisions can lead to long-term issues.
@Najib Desperate times call for desperate measures. The economy can’t wait for endless debates and red tape.
This proposal might just lead to inflation. More money in the market without corresponding production increase can be disastrous.
Inflation is a risk, but careful management of the funds and ensuring it circulates in growth-promoting avenues could mitigate that.
@PhD Tom True, but do we trust the government to manage it carefully? History hasn’t been kind on that front.
@ThaiPatriot Agreed. The key is not just the proposal but the execution of it. Transparency is critical.
Giving people money directly is the best way to stimulate spending immediately. Loans for this purpose are totally justified.
Lending is one thing, misuse of public funds is another. We need to be careful into what depths we delve here.
@Financier89 Fair point, but focusing on people first isn’t a misuse. It’s prioritizing citizens over bureaucracies.
We need more comprehensive solutions. Just handing out money won’t fix the underlying issues in our economy.
122 billion baht! Couldn’t this money be better spent on infrastructure or educational reforms?
I hate to say it, but this feels like a populist move to secure votes rather than a genuine economic strategy.
Politics always plays a role, Gerald. But if it benefits the people, does it really matter?
Increasing investment spending is good, but can Thailand really handle more debt at this point? We need long-term solutions, not quick fixes.
As a teacher, I see families struggling. This 10,000 baht could make a difference in people’s everyday lives despite the debates.
It’s going to be interesting to see if this really plays out legally. The skepticism around its compliance is not unfounded.
Why can’t the opposition just support a policy that will help people? Not everything needs to go through endless debates.
What about future generations? They’ll be the ones paying off these loans. This just feels irresponsible.
The tourism sector is resurging, as he said. Wouldn’t boosting that sector provide a more sustainable economic growth model?
Yes, but tourism alone can’t revive an entire economy. Consumer spending inside the country is also crucial.
This proposal has too many uncertainties. The government should take a more conservative approach with clear compliance to the laws.
This handout is like a sugar rush. Sure, there’s an immediate boost, but what about the crash afterward?
I say give it a shot. Sometimes bold moves pay off. Doing nothing is the real risk here.
A risk, yes, but calculated. The goal is to get people spending and investing. That’s how economies grow.
Anyone else worried about the precedent this sets? What if other administrations start pushing through questionable expenditures?