New government has room to spend 2 trillion baht on populist pledges

[webfact]

Image courtesy of Bangkok Post

 

by Alex Morgan

The upcoming government is expected to have around two trillion baht at its disposal for implementing its populist policies, according to an anonymous source from the Finance Ministry. The figure takes into account the 500 billion baht needed for the Pheu Thai Party’s pledge to provide digital wallet handouts of 10,000 baht to those aged 16 and over.

 

Should the government need to borrow money to fund the proposed policies, it can do so through an emergency decree. However, such decrees are bound by strict terms and conditions, such as a lack of alternative funding sources. Thailand has previously issued two emergency loan decrees to manage the impact of the pandemic on the nation.

 

All government loans, however, must adhere to the state debt ceiling determined by the Financial and Fiscal Policy Committee, which is currently set at 70% of GDP. As of March, Thailand’s public debt amounted to 10.8 trillion baht, equalling 61.2% of GDP.

 

Fiscal 2023 is expected to see government debt reach 61.7% of GDP, but offers room to borrow around 1.5 trillion baht or 8-9% of GDP. The new government also has the option to use revenue collection to fund campaign promises, as a collection for the first half of fiscal 2023 surpassed the target by almost 100 billion baht. If this trend continues, the government could generate a further 200 billion baht above the fiscal target.

 

Full story: https://thethaiger.com/news/business/new-government-has-room-to-spend-2-trillion-baht-on-populist-pledges

 

-- © Copyright Thaiger 2023-05-15

 

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[ezzra]

Just wondering how much of the 2 trillion will actually find itself to good and correct cause? My guess is, not much.

[hotchilli]

4 hours ago, ezzra said:

Just wondering how much of the 2 trillion will actually find itself to good and correct cause? My guess is, not much.

But more than in the past.

[ChrisY1]

Lets hope that all these stupid election banners are removed quickly. 

[Xonax]

Many new pockets to be filled after the election.