PM Srettha and BoT Chief Clash Over Handout Scheme

[webfact]

 

Thailand Prime Minister Srettha Thavisin and Bank of Thailand (BoT) Governor Sethaput Suthiwartnarueput are at odds over the government’s proposed 500-billion-baht handout scheme.

 

The plan, aimed at providing 10,000 baht in digital currency to around 50 million Thai citizens later this year, has led to intense discussions between the two leaders.

 

In a recent Bloomberg interview, Governor Sethaput criticised the broad economic stimulus as unnecessary and excessive. He suggested that the government should limit the handout to the 15 million citizens holding welfare cards, favouring a more targeted approach to aid those in genuine need.

 

Responding to these concerns, PM Srettha has defended the initiative, stating that it will boost regional economies by requiring the money to be spent locally. "When the project launch date is clear, I believe industries and SMEs will accelerate production to meet this surge in purchasing power. This will stimulate the economy," Srettha remarked.

 

However, the proposal has triggered heated debates in Parliament. Critics argue that the scheme could lead to risky borrowing and strain public finances. During discussions on the 2025 budget, opponents highlighted the digital wallet programme as a major fiscal concern.

 

The prime minister reassured that the short-term economic boost from the handout would help lay the foundation for broader, long-term economic policies. These policies aim to attract multinational investments, generate jobs, and drive industrial upgrades, ultimately increasing GDP and enabling the government to meet its financial obligations.

 

Governor Sethaput remains sceptical, advocating for a more cautious approach. “If you want to do the scheme, it is better to do it in a targeted way and also a smaller way… we don’t see the need to try to stimulate consumption across the board,” he said.

 

The BoT warns that making such a large-scale handout could jeopardise economic stability. Sethaput emphasised that the BoT's growth forecasts, at 2.6% for this year and 3% for the next, do not take the handout scheme into account, suggesting confidence in achieving these rates without the stimulus.

 

With ongoing legal and financial challenges, the future of the digital wallet scheme remains uncertain. PM Srettha, however, is pushing forward, committed to delivering the promised funds within the final quarter of this year, despite the swirling debates and fiscal uncertainties.

 

Picture courtesy: MGR online

 

-- 2024-06-21

 

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[Tropicalevo]

3 hours ago, webfact said:

Governor Sethaput criticised the broad economic stimulus as unnecessary and excessive. He suggested that the government should limit the handout to the 15 million citizens holding welfare cards, favouring a more targeted approach to aid those in genuine need.

Well said.

Do not give in to the corrupt PM.

[ikke1959]

The money is a one time handout and will not help the economy but will a heavy burden on the country for several years... There would be a much better plan to handout to real needed some money, but therefor they have to know who is living where and doing what and earn how much as I wrote several times already. Then they could raise the daily wages from 350 THB to 500 THB or 600THB, which would do much more good to the economy than a one time payment. People would get more money to live with. But again the Government has no clue who is living where doing what and earn how much.

[Maitdjai]

1 hour ago, ikke1959 said:

The money is a one time handout and will not help the economy but will a heavy burden on the country for several years... There would be a much better plan to handout to real needed some money, but therefor they have to know who is living where and doing what and earn how much as I wrote several times already. Then they could raise the daily wages from 350 THB to 500 THB or 600THB, which would do much more good to the economy than a one time payment. People would get more money to live with. But again the Government has no clue who is living where doing what and earn how much.

This government has no clue in nothing. Except in "announcing" hubs, it is better as its predecessor.

[brianthainess]

4 hours ago, webfact said:

Governor Sethaput criticised the broad economic stimulus as unnecessary and excessive.

I think he knows a lot more about economics than the clown trying to run this country, who has/had no pollical knowledge until stealing the election. You can't borrow or spend money, that is simply not there.

[Pouatchee]

5 hours ago, webfact said:

I believe industries and SMEs will accelerate production to meet this surge in purchasing power.

 

what drug is he on?

i want some...

[OneMoreFarang]

1. I still wait to read any good explanation how spending this huge amount of money will benefit Thais and Thailand.

2. I am sure Thaksin and his buddies wouldn't have come up with something like this without making sure there will be huge opportunities for his cronies to make a lot of money. The government should publish the details so that it is transparent what they want to do. And independent people, maybe even international, should scrutinize this.

This is just too much money to play around with because the PM and his boss want it. 

[OneMoreFarang]

Just now, Pouatchee said:

5 hours ago, webfact said:

I believe industries and SMEs will accelerate production to meet this surge in purchasing power.

 

what drug is he on?

i want some...

Let's say product A can be bought with this money, and people love product A, i.e. mobile phones, then I wouldn't be surprised if there are lots of special promotions for those shiny new wonderful things to buy. 

[brianthainess]

2 hours ago, Pouatchee said:

 

what drug is he on?

i want some...

With all his Visions I'd think LSD. 

[Jai Dee]

A dangerous troll post in violation of our Community Standards has been removed.

[Srikcir]

5 hours ago, OneMoreFarang said:

I still wait to read any good explanation how spending this huge amount of money will benefit Thais and Thailand.

We have seen almost a decade under PM Prayut handing out his "gifts" to the public and here the nation is today - worse off. Now PM Thavisin repeats history and wonders why BoT doesn't trust him.

[Heavy Metal]

5 hours ago, OneMoreFarang said:

1. I still wait to read any good explanation how spending this huge amount of money will benefit Thais and Thailand.

2. I am sure Thaksin and his buddies wouldn't have come up with something like this without making sure there will be huge opportunities for his cronies to make a lot of money. The government should publish the details so that it is transparent what they want to do. And independent people, maybe even international, should scrutinize this.

This is just too much money to play around with because the PM and his boss want it. 

Bankruptcy Looms as Politicians with heavily weighted pockets leave Thailand in droves on Mr T's Private Jets

[Enzian]

If we want to see the baht chart continue its upward (meaning downward)movement, we should root for Srettha. If we would like not to see the Thai people suffering two or three years in the future, root for Sethaput. Unless, of course, this has in fact all been decided one way or the other and articles like this are just part of the theater.

[OneMoreFarang]

21 minutes ago, Srikcir said:

We have seen almost a decade under PM Prayut handing out his "gifts" to the public

And did you not see those gifts when Thaksin was in charge?

If Thaksin wouldn't have been so corrupt, then Prayut would never have been in politics. 

[thailand49]

This is what this PM and his Party, boss Thaksin like to do. 

Give handouts socialist programs to get votes, medical, min wages, all needed in cases. Higher wages for those coming out of higher education 25,000 to start yet all the good paying jobs are given based on nepotism especially government.

yingluck vote for me your kid will get a tablet my son is still waiting he's 25 LOL.

Covid, did people get anything NO!

those who needed it the most got nothing.

But of course nothing a foreign say will matter go ahead make my day when the economy tanks baht is worthless 70 to 1, I come out regardless. LOL

 

[hotchilli]

12 hours ago, webfact said:

In a recent Bloomberg interview, Governor Sethaput criticised the broad economic stimulus as unnecessary and excessive. He suggested that the government should limit the handout to the 15 million citizens holding welfare cards, favouring a more targeted approach to aid those in genuine need.

No moving the goal posts after the pre-election promise was made to reward voters with a cash handout... not saying the 50 million population is correct, but that was the promise, now they have to honour it.

[zzaa09]

9 hours ago, Tropicalevo said:

Well said.

Do not give in to the corrupt PM.

A cycle of corruption for ages. 

Business as usual.

[john donson]

it is and was VOTE BUYING and they did not even win the elections

 

 

[kickstart]

15 hours ago, ikke1959 said:

The money is a one time handout and will not help the economy but will a heavy burden on the country for several years... There would be a much better plan to handout to real needed some money, but therefor they have to know who is living where and doing what and earn how much as I wrote several times already. Then they could raise the daily wages from 350 THB to 500 THB or 600THB, which would do much more good to the economy than a one time payment. People would get more money to live with. But again the Government has no clue who is living where doing what and earn how much.

How would that work, companies /factories would not like paying more ,as has been said when the minimum wages increase is announced, and how would the government pay the increase ,factory workers on the books ,can be paid ,open to corruption, but a high percentage of the workers that need the money work in agriculture /building trade  ect.no paper work, here today gone tomorrow, no records.

Just would not work. the only way would be, as has been said, use the registered welfare card, that has been going for a few years now and it works 

[buriram39]

23 hours ago, ikke1959 said:

The money is a one time handout and will not help the economy but will a heavy burden on the country for several years... There would be a much better plan to handout to real needed some money, but therefor they have to know who is living where and doing what and earn how much as I wrote several times already. Then they could raise the daily wages from 350 THB to 500 THB or 600THB, which would do much more good to the economy than a one time payment. People would get more money to live with. But again the Government has no clue who is living where doing what and earn how much.

It is paid for by the people eventually, nothing is free.

[ikke1959]

7 hours ago, kickstart said:

How would that work, companies /factories would not like paying more ,as has been said when the minimum wages increase is announced, and how would the government pay the increase ,factory workers on the books ,can be paid ,open to corruption, but a high percentage of the workers that need the money work in agriculture /building trade  ect.no paper work, here today gone tomorrow, no records.

Just would not work. the only way would be, as has been said, use the registered welfare card, that has been going for a few years now and it works 

It would work if there is a good registration system instead of the blue book... Everybody should  register on the address they live, and everybody should fill in a tax form with what their job is, where they work and how much they earn.. and than indeed on the welfare card there could be money to pay the rest the company won't pay... But now it is a mess as nobody knows where someone lives, what work and how much they earn. How can you help people?. 

[kimamey]

On 6/21/2024 at 9:28 AM, Pouatchee said:

 

what drug is he on?

i want some...

I don't know either,  but if it's produced locally and can be bought using the digital wallet then that should help the economy.  😀