BANGKOK — After a 10-hour debate on the draft of the Additional Budget Expenditure Act for the fiscal year 2024, amounting to 122 billion baht or approximately 3.4 billion US dollars, to be used for the digital wallet project, the House of Representatives voted to approve the principle with 297 votes in favor and 164 votes against.
Subsequently, the assembly appointed a 32-member special committee to consider amendments and present them to the House of Representatives for consideration in the second and third readings on July 31.
Prime Minister Srettha Thavisin stated in the meeting that the government urgently needs to spend money according to its immediate policies to stimulate the economy. This would be done by promoting cash circulation in various areas to improve the quality of life and livelihood, create job opportunities for people and businesses, while maintaining consumption and investment levels in the country and enhancing the country’s competitiveness.
This urgent action cannot wait for the 2025 fiscal year’s regular expenditure budget, hence the need for an additional expenditure budget not exceeding 122 billion baht.
The PM mentioned that the estimated funds for this additional expenditure budget for the fiscal year 2024 include 10 billion baht from taxes and other revenues not previously included in the estimates and 112 billion baht from borrowing to cover the budget deficit.
He explained that the country’s macroeconomic conditions are expected to grow in a range of 2.0 – 3.0 percent (with a median of 2.5 percent) in 2024, supported by higher public spending and investment, the recovery of the tourism sector and related services, domestic demand growth in both consumption and investment, and a gradual recovery in exports as a result of the recovery in global trade.
However, there are limitations and risks due to the high levels of household and corporate debt, climate change affecting agricultural production and the high and increasing volatility of global economic and financial systems.
Inflation is expected to be between 0.1 and 1.1 percent (with a mean of 0.6 percent) and the current account is expected to show a surplus of 1.2 percent of GDP. On 30 April 2024, government debt was 11.5 trillion baht or 63.78 percent of GDP, which is within the legal limit of 70 percent of GDP. As of 31 May 2024, the Treasury’s cash balance is 394 billion baht and international reserves are 221 billion dollars, indicating a strong position.
Move Forward Party MP Sirikanya Tansakun debated against the government’s request to borrow an additional 122 billion baht to help fund the 10,000 baht digital wallet handouts scheme on July 17, 2024.
The additional spending budget of 122 billion baht for 2024 is categorized as a central budget, which accounts for 100 percent of the total additional budget and is aimed at stimulating and strengthening the country’s economic system. Together with the original budget framework of 3.48 trillion baht for the year 2024, the total expenditure budget for the year 2024 is 3.6 trillion baht.
The Prime Minister admitted that although the 2024 supplementary expenditure budget will increase the deficit, the government has earmarked 97.6 billion baht for capital expenditure in the 2024 supplementary expenditure budget.
Together with the capital expenditure of 710 billion baht in the regular budget for 2024, this totals 807.6 billion baht in capital expenditure, an increase of 17.1 percent compared to capital expenditure in the 2023 budget year, accounting for 22.4 percent of the total budget.
The management of the overall expenditure budget follows the government’s policy to stimulate the economy, ensure efficient use of taxpayers’ money, promote economic growth and sustainably increase the country’s potential while adhering to legal fiscal discipline.
On the opposition side, led by Mr. Pakornwut Udompipatskul of the Move Forward Party, the opposition chairman stated three reasons for rejecting the draft of the supplementary budget bill for fiscal year 2024:
The evaluation shows that the impact of the digital wallet measures on the Thai economy is not cost-effective. This means that the benefit for stimulating GDP this year and next year is less than the budget allocated. Therefore, the government should take more appropriate stimulus measures to utilize the budget effectively.
There is a significant risk of legal breaches and the setting of wrong precedents in budget preparation and future spending, including the provisions on capital expenditure in this Bill or central expenditure in the next financial year or late in the financial year.
The current economic problems in Thailand are more than just boosting consumption, but also include challenges in the production sector. The government must provide budgetary resources to strengthen the Thai economy in the long term.
Although Move Forward Party MP Sirikanya Tansakun urged fellow MPs, including those in the government coalition parties, to reject the request, her efforts did not succeed.
At a Monday dinner party for coalition government parties at the Park Nai Lert Hotel, the PM said that the cooperation of everyone in this government shows that they have more than 314 votes. He added that although working together may sometimes be tense, they work as one.
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