In an animated House meeting on Wednesday, Prime Minister Srettha Thavisin passionately championed the necessity of raising the 2024 fiscal budget by a whopping 122 billion baht to turbocharge the economy. Proposing this supplementary budget bill, Mr. Srettha aimed to secure funds for an ambitious digital wallet scheme, despite objections from the opposition who flagged potential legal hurdles, including breaches of the State Fiscal and Financial Discipline Act.
Mr. Srettha laid out a compelling case for his urgency: the extra funding is essential to invigorate economic activity, sustain consumption levels, and create golden opportunities for individuals and businesses alike. At the heart of this financial boost is the Pheu Thai Party’s flagship policy of distributing 10,000 baht in digital cash to as many as 50 million Thais. With registration set to begin on August 1 and the rollout planned for October, the clock is ticking.
Time, Mr. Srettha emphasized, is of the essence. The government can’t afford to wait until the 2025 fiscal budget kicks in come October, as the current economic doldrums demand swift action. Thus, the plan: a swift infusion of 122 billion baht into the 2024 budget, with 10 billion sourced from tax revenue and the remaining 112 billion acquired through loans. This move would significantly ramp up investment spending from its current 17.1% to an invigorating 22.4%.
“This is not a whimsical spend,” Mr. Srettha assured the House. “The digital wallet handout is a carefully vetted initiative, staying within the boundaries of the State Fiscal and Financial Discipline Act.”
The forecast is cautiously optimistic: economists predict a 2-3% growth this year, buoyed by public spending, rejuvenated tourism, and export surges. However, the road ahead isn’t solely paved with gold. Mr. Srettha cautioned about the looming specters of high household and business debt, coupled with a volatile global economic landscape.
Reassuring his skeptics, Mr. Srettha pointed to the nation’s robust financial health, with public debt standing at 63.8% of GDP as of April 30, and a Treasury balance of 394 billion baht as of May 31. “Our commitment to fiscal and monetary discipline is unwavering. Every baht will be spent judiciously to ensure sustainable growth,” he proclaimed.
However, not everyone in the House was equally convinced. Sirikanya Tansakul, deputy leader of the opposition Move Forward Party, expressed her misgivings about the supplementary funding. She cited potential violations of the State Fiscal and Financial Discipline Act, particularly the stipulation that any additional budget must be utilized within the fiscal year, ending September 30. Given the planned timing of the digital wallet handout, she warned, this could pose a legal quagmire.
Ms. Sirikanya voiced concerns about setting a risky precedent, where agencies might exploit similar delays if unable to disburse funds before fiscal deadlines. She also cast doubts on whether the digital wallet scheme genuinely qualifies as investment spending.
The debate is far from over, but one thing is clear: with the stakes high and opinions sharply divided, this fiscal showdown promises to be one for the books. Whether Mr. Srettha’s bold plan will spark the intended economic revival, only time and scrutiny will tell.
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