Funding populist policies: borrowing or tax hikes?

[webfact]

Image courtesy of Bangkok Post

 

by Alex Morgan

During the general election, political parties presented various populist pledges aimed at attracting voters. Among these were the controversial 10,000-baht digital wallet handout for individuals aged 16 and over, increasing minimum daily wages, raising minimum monthly salaries for university graduates, suspending debts for farmers, cutting electricity tariffs, and increasing the monthly allowance for people aged 60 and over.

 

The Thailand Development Research Institute estimated that around 3 trillion baht will be needed to fulfil 87 populist policies pledged by nine political parties. However, the sources of funding for these policies are yet to be determined, prompting concerns regarding potential tax increases and further borrowing that could escalate public debt.

Kobsak Pootrakool, chairman of the Federation of Thai Capital Market Organizations, suggested that either increased borrowing or tax collection may be utilized by the new government to fund short-term populist policies.

 

Full story: https://thethaiger.com/news/business/funding-populist-policies-borrowing-or-tax-hikes

 

-- © Copyright Thaiger 2023-05-15

 

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[Mickeymaus]

Here in detail what each party promised:

 

https://www.reuters.com/world/asia-pacific/election-promises-thailands-major-parties-2023-05-10/

[ourmanflint]

Pheu Thai promised to "Triple average income of farmers to 30,000 baht per rai (0.16 hectare) per year by 2027."

literally an impossible task, this could never ever have been achieved and was just a cynical ploy to get rural votes, glad they will fail

Edited May 15, 2023 by ourmanflint