Economy Thailand's 500 Billion Baht Borrowing Plan Criticised Amid Tariff Crisis

[snoop1130]

File photo for reference only

 

Amid plans to borrow 500 billion baht to boost Thailand's economy facing a US tariff crisis, former finance minister Thirachai Phuvanatnaranubala has urged caution, citing potential pitfalls in the government's strategy. As reported by Naewna newspaper, Thirachai cautioned against overselling the notion of "turning a crisis into an opportunity" without considering the long-term implications for Thai citizens.

 

Thirachai highlights that the borrowing aligns with the International Monetary Fund’s gloomy GDP forecast, reducing expectations for 2024 and 2025. The proposed borrowing would further inflate public debt, already at 10.69 trillion baht, equating to a per capita debt burden of 160,000 baht.

 

In his statement, Thirachai outlined five critical areas of concern:

 

 

 

1. Temporary Consumption Boost: He warned that distributing cash to spur consumption might temporarily lift GDP figures but won't sustain economic growth or income needed to repay the debt, given the underwhelming impact of previous cash handout projects.
2. Prudent Budget Utilisation: The government should prioritise using budgetary funds, cutting unnecessary or non-urgent expenditures, before resorting to borrowing.
3. Monetary Strategy Discussions: A dialogue between the Finance Ministry and Bank of Thailand is necessary, focusing on easing monetary policies, boosting financial competition, serious debt restructuring, and reducing interest margins.
4. Reassessment of Cash Handout Scheme: Thirachai suggests cancelling the third phase of the 10,000-baht cash handout due to global uncertainties, proposing that fiscal resources be conserved for emergency situations.
5. Economic Restructuring for Future Growth: Proposals include enhancing education, AI adoption, skill development, and fostering regional trade collaborations to increase economic potential.

 

Thirachai's critique underscores concerns that government policies might inadvertently benefit politically connected capitalists rather than the broader populace. As Thailand navigates the dual pressures of international trade dynamics and domestic economic hurdles, the call is for vigilant public oversight of governmental fiscal actions.

 

  Adapted by ASEAN Now from The Thaiger 2025-04-29

 

 

[worgeordie]

With so much uncertainty in the World , I don't think this is the best

time to be taking on loans , especially as it seems they want to give

it away under the 10,000 Baht scheme ,it's just going to increase

inflation .

 

regards worgeordie 

[BangkokReady]

12 minutes ago, snoop1130 said:

Amid plans to borrow 500 billion baht to boost Thailand's economy facing a US tariff crisis, former finance minister Thirachai Phuvanatnaranubala has urged caution, citing potential pitfalls in the government's strategy.

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

[worgeordie]

2 minutes ago, BangkokReady said:

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

Are you supposing the the 100 billion is going to go in someone's pocket 

 

regards Worgeordie

[BangkokReady]

2 minutes ago, worgeordie said:

Are you supposing the the 100 billion is going to go in someone's pocket 

 

regards Worgeordie

 

That's my conservative estimate.

[Tom100]

Borrowing to spend short-term is very unproductive. A better idea would be to create a stable environment for farang to stay here long term. 

 

I know 3 friends in Thailand that have left recently b/c of visa issues. All spent 30-50k per month -- boosting the economy -- but because they were under-50 and could not get retirement visas they had a hard time staying. 

 

Since the average monthly Thai income is about 15,000 baht, I think that all farangs spending that amount or more are creating jobs.

 

 

[Peabody]

3 hours ago, snoop1130 said:

Reassessment of Cash Handout Scheme: Thirachai suggests cancelling the third phase of the 10,000-baht cash handout due to global uncertainties, proposing that fiscal resources be conserved for emergency situations the next election.

 

[FlorC]

3 hours ago, snoop1130 said:

Thirachai's critique underscores concerns that government policies might inadvertently benefit politically connected capitalists rather than the broader populace. As Thailand navigates the dual pressures of international trade dynamics and domestic economic hurdles, the call is for vigilant public oversight of governmental fiscal actions.

Thirachai is right . But if it makes the THB weaker , go for it.

[CallumWK]

21 minutes ago, FlorC said:

Thirachai is right . But if it makes the THB weaker , go for it.

 

It will not make the baht weaker in any form, because your hero in the US is crashing the dollar

[blaze master]

3 hours ago, BangkokReady said:

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

 

I cut confirm but I swear read or watched a video once where it was claimed that about 200bn baht floods into phuket every year