AMID a move to borrow 500 billion baht to stimulate the economy in face of US tariff crisis, a former finance minister warned the government to stop selling dreams of turning a crisis into an opportunity, Naewna newspaper said today (Apr. 29).
Mr. Thirachai Phuvanatnaranubala, former finance minister and deputy leader of Palang Pracharath Party, said the Finance Ministry’s preparation to borrow 500 billion baht comes after the International Monetary Fund (IMF) cut Thailand’s GDP for 2024 from 2.9% to 1.8% and for 2025 from 2.6% to 1.6%
As this borrowing will increase public debt from current 64.21% of GDP by about 3%, he explained that the current debt of 10.69 trillion baht, divided by 66 million Thais, has already burdened each Thai citizen with 160,000-baht state debt.
He urged the public to watch the government on five issues as follows:
– The government should reduce its borrowing to distribute cash to the public to spur consumption because even if this measure increases GDP, it is only temporary.
This sort of a measure does not boost the country’s efficiency thus will not increase future income for use to repay debt.
This can be seen from the 175-billion-baht budget spent on the 10,000-baht cash handout project having very little effect on stimulating the economy and there is no sustainable momentum.
– As far as possible the cash to stimulate the economy must come from the budget and the government must be decisive in cutting unnecessary or non-urgent expenses.
– Taking soft loans comes towards the end and the Finance Ministry should urgently discuss four key issues with Bank of Thailand as follows:
(1) Easing monetary policy;
(2) Increasing competition in the financial institution system;
(3) Serious debt restructuring by requiring financial institutions to use more accumulated profits to shoulder the burden;
(4) Squeezing the interest margin of financial institutions.
– The government should immediately cancel phase three of the 10,000-baht cash handout scheme because the global situation now has many risks that need to be monitored. Therefore, fiscal bullets should be kept for use in case of emergency.
– The government should restructure the economy for higher potential, including youth education, helping adults use AI, increasing the skills of workers, and joining hands with regional countries to accelerate trade and investment.
“People should keep an eye on whether, amid the US tariff crisis, this government will try to sell dreams of ‘turning a crisis into an opportunity’ but instead of being an opportunity for Thai brothers and sisters, will it be an opportunity for the party’s capitalists?” Thirachai questioned.
CAPTION:
Former Finance Minister Thirachai Phuvanatnaranubala. Top photo: Naewna, Front Page photo: Thai Rath
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