According to Setha, the trigger digital wallet plan will help the economy, which is in immediate need.
PUBLISHED: 17 Jul 2024 at 20: 38
Prime Minister Srettha Thavisin said on Wednesday that he had proposed a supplementary budget bill to the House to aid fund the electric pocket system, adding that it is crucial to increase the macroeconomic resources for 2024 by 122 billion baht.
The opposition parties said they would vote against the bill because it raised legal issues, including potential violations of the State Fiscal and Financial Discipline Act.
According to Mr. Srettha, additional funding is urgently required to boost economic activity, maintain consumption levels, and foster business opportunities for both individuals and the business sector.
The Pheu Thai Party’s signature policy is to begin in October with the release of 10, 000 baht in digital cash on August 1. Registration will open on August 1.
Mr. Srettha had made the decision to increase the 2024 budget by 122 billion baht in order to fund the handout and address the sluggish economy more quickly because he claimed the government could not wait for the 2025 fiscal budget to be released in October.
Of the amount proposed, 10 billion baht would come from tax revenue and 112 billion from a loan, he said, noting the increase would raise investment spending in the 2024 budget from 17.1 % to to 22.4 %.
He assured the House that the spending plan adheres to the State Fiscal and Financial Discipline Act, and that the money would be spent using the digital wallet handout.
The economy is forecast to grow 2-3 % this year due to increased spending, public investment, the recovery of the tourism and service sectors and through export growth, he said. However, he acknowledged risks and limitations owing to high household debt, business sector debt, as well as the volatile global economic situation.
According to Mr. Srettha, the nation’s financial situation is stable, with a 394 billion baht Treasury balance as of May 31 and a public debt that was 63.8 % of the country’s GDP as of April 30 this year.
According to him,” the government will striktly adhere to fiscal and monetary discipline and ensure that the money is spent responsibly in order to stimulate the economy and promote sustainable growth.”
The supplementary funding request for the digital wallet, according to Sirikanya Tansakul, deputy leader of the opposition’s Move Forward Party, is in danger of violating the State Fiscal and Financial Discipline Act provisions.
According to her, the additional budget must be distributed by the end of the fiscal year, which is by Sept. 30. However, the 10, 000-baht handout is expected in the last quarter of this year.
She argued that the registration date for August 1 should not be used to denote a start-up date for debt obligations in order to justify a delay in budgetary allocation.
Ms. Sirikanya questioned whether the digital wallet scheme qualifies as investment spending and whether other agencies might try to follow suit if they are unable to disburse funds before the fiscal year ends.