Prime Minister Srettha Thavisin has tabled an additional 122 billion baht (RM15.8bil) budget for the 2024 fiscal year for his signature stimulus programme as lawmakers held a debate to scrutinise the much-criticised handout scheme.
“The government needs the budget to stimulate the economy by boosting money circulation in various areas,” Srettha told parliament.
The 500 billion baht (RM64.7bil) scheme is aimed at jump-starting South-east Asia’s second-largest economy, which grew only 1.9% last year and has trailed regional peers.
Srettha said the economy was expected to grow 2.5% this year and extra budget spent would adhere to fiscal discipline.
The scheme, a giveaway of 10,000 baht (RM1,290) each to 50 million Thais to be spent locally within six months, has been delayed to the fourth quarter of this year due to issues finding funding sources.“There is a need to stimulate the economy,” Finance Minister Pichai Chunhavajira told the debate. “If nothing is done, there will definitely be a crisis.”
The government on July 15 said it had the approval of an intra-agency committee to use 2024 and 2025 budgets for the so -called “digital wallet” programme.
The panel includes members of the central bank, which has voiced concern about the programme and has recommended it be more narrow and focused on the poor.
The stimulus plan was the ruling Pheu Thai Party’s flagship policy in the 2023 election and has been criticised by economists and two former central bank governors for being fiscally risky, which the government rejects.
Opposition lawmaker Sirikanya Tansakul questioned if the handout programme was really necessary and said the funds would be better kept for emergencies.
“We increase the fiscal risks for the country. Right now, we don’t room have room to deal with emergency situations,” Sirikanya said in the debate.
The budget debate also comes as Srettha faces a Constitutional Court case that could potentially lead to his dismissal over one of his cabinet appointments. He denies wrongdoing. — Reuters
