PUBLISHED: 19 Apr 2024 at 05 :53
The Pheu Thai-led government’s digital handout scheme could exhaust the country’s capacity to handle large-scale emergencies, claims the main opposition Move Forward Party ( MFP).
The MFP stated on Thursday that this is one of the three possible worst-case possibilities that the 500-billion-baht program is scheduled to launch in the third quarter of this year would have.
If the online budget scheme’s application did not meet its financial signal goals, MFP list-MP Chulapong Yukate, an experienced businessman, said the three scenarios might happen.
In the first incident, protracted wars in the Middle East and Europe and looming conflicts abroad could result in a global economic crisis following season.
If this occurs, he said, Thailand risks being seriously affected due to its limited fiscal resources, which would be greatly sapped by the handout plan.
According to Mr. Chulapong, the nation would have little capacity to fend off additional financial danger.
The government can never fully survive without just tax revenue, which accounts for just 13. 7 % of its gross domestic product ( GDP ), he said.
Compared to the average tax revenue collected in developed countries, which is 35 % of their GDP, Thailand’s tax revenue has dwindled from 17 % of the GDP to 13. 7 % at present, he said.
” In short, we are overspending with minimal revenue,” he said.
The wallet scheme’s second scenario is that there wo n’t be enough money left over for other initiatives to help farmers and the poor and low-income people or small businesses. He claimed that each of these sectors and areas contributes significantly to the national business.
The next circumstance is the risk of large-scale problem due to the system, he said.
The technology used for the flyer, if not managed properly, will make it vulnerable to bone, he claimed.