Government accused by Move Forward of fiddling calculation of GDP

[webfact]

 

Move Forward party-list MP Sirikanya Tansakul has questioned the government’s budgeting for the 2024 fiscal year, saying that it does not reflect the government’s claim that Thailand is facing several crises.

 

She also accused the government of cheating in the calculation of GDP, claiming that it will be able to achieve 5% growth in the first year of its term in office by including the inflation rate in the calculation, adding that no country has ever tried this method of calculation before.

 

She also noted that no money is allocated in the budget bill for several government projects which require funding, citing as one example the controversial “digital wallet” scheme, which requires about 500 billion baht in funding, to be secured through public borrowing by virtue of a loan bill.

 

During the debate on the government’s budget bill for 2024, Sirikanya singled out several shortcomings, saying that such mistakes are inexcusable, but indicative of the government’s lack of professionalism.

 

Full story: Thai PBS 2024-01-05

 

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[2baht]

5 minutes ago, webfact said:

She also accused the government of cheating in the calculation of GDP

 Now why would they do that??? 

[retarius]

I must say Move Forward seem to be doping a decent job of holding this shower to account.  Digital wallets indeed. 

[mikebell]

2 hours ago, webfact said:

no country has ever tried this method of calculation before.

Maths Thai style.

[hotchilli]

7 hours ago, webfact said:

She also accused the government of cheating in the calculation of GDP, claiming that it will be able to achieve 5% growth in the first year of its term in office by including the inflation rate in the calculation, adding that no country has ever tried this method of calculation before.

No other country has a calculator like Thailands.

[hotchilli]

7 hours ago, 2baht said:

 Now why would they do that??? 

My guess is 

[Srikcir]

Inflation rate is not a component of Gross Domestic Product by definition. GDP is the sum of all money spent by consumers, businesses and the government in a given period. The rate of GDP growth or decline can be affected by rate of inflation/deflation but the rate itself is not a component of GDP.

Regardless, I've not seen by either the MFP nor the government any analysis publically put forth by a qualified and experienced economist who would be seen as non-political. That's not to say either doesn't have access to such professionals, but not citing such professional sources is suspect more to wishful thinking than to academic accuracy.

For 2024 the World Bank is projecting 3.2% providing there is a recovery in tourism (in whatever form?), increase in export of goods & services value (currently weak) and sustained private consumption (currently weak).

Frankly, tourism is easier to affect than other components of GDP but it's also the least contributing value (aka "low hanging fruit"). And as we've seen foreign tourism most affected by foreign events outside of Thailand's influence or control.

[ikke1959]

MFP is the party with brains and visions.. Proven again, but the old school will do what they want and nobody can stop them

[Eric Loh]

10 hours ago, webfact said:

She also accused the government of cheating in the calculation of GDP, claiming that it will be able to achieve 5% growth in the first year of its term in office by including the inflation rate in the calculation, adding that no country has ever tried this method of calculation before.

Depend on whether she is refering to Real GDP or Nominal GDP. Real GDP takes into account of inflation. She will get an earful from Sreetha.