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Tag: Thai Prime Minister Srettha Thavisin

  • Thai PM seeks extra $3.4 bln for stimulus as lawmakers criticise handout plan

    Thai PM seeks extra $3.4 bln for stimulus as lawmakers criticise handout plan

    BANGKOK, July 17 (Reuters) – Thai Prime Minister Srettha Thavisin on Wednesday tabled an additional 122 billion baht ($3.4 billion) budget for the 2024 fiscal year for his signature stimulus programme, as lawmakers held a debate to scrutinise the much-criticised handout scheme.

    “The government needs the budget to stimulate the economy by boosting money circulation in various areas,” Srettha told parliament.
    The 500 billion-baht ($13.9 billion) scheme is aimed at jump-starting Southeast Asia’s second-largest economy, opens new tab, which grew only 1.9% last year and has trailed regional peers.

    Srettha said the economy was expected to grow 2.5% this year and extra budget spending would adhere to fiscal discipline.

    The scheme, a giveaway of 10,000 baht each to 50 million Thais to be spent locally within six months, has been delayed to the fourth quarter of this year due to issues finding funding sources.

    “There is a need to stimulate the economy,” Finance Minister Pichai Chunhavajira told the debate.

    “If nothing is done, there will definitely be a crisis.”

    The government on Monday said it had the approval of an intra-agency committee to use 2024 and 2025 budgets for the so -called “digital wallet” programme.

    The panel includes members of the central bank, which has voiced concern about the programme and has recommended it be more narrow and focused on the poor.

    The stimulus plan was the ruling Pheu Thai Party’s flagship policy in the 2023 election and has been criticised by economists and two former central bank governors for being fiscally risky, which the government rejects.

    Opposition lawmaker Sirikanya Tansakul questioned whether the handout programme was really necessary and said the funds would be better kept for emergencies.

    “We increase the fiscal risks for the country. Right now, we don’t room have room to deal with emergency situations,” Sirikanya said in the debate.

    The budget debate also comes as Srettha faces a Constitutional Court case that could potentially lead to his dismissal over one of his cabinet appointments. The prime minister denies wrongdoing.

  • Thailand’s new PM draws flak in parliament for ‘aimless’ economic agenda

    Thailand’s new PM draws flak in parliament for ‘aimless’ economic agenda

    Bangkok: Thai Prime Minister Srettha Thavisin came under fire in parliament on Monday over a new government policy agenda that opposition lawmakers called vague and short of some of his party’s boldest election pledges.

    Real estate tycoon Srettha was approved as prime minister in a parliamentary vote last month after his populist Pheu Thai Party, the second-place finisher in a May election, agreed to lead a coalition government that included parties backed by its fierce rival, the military.

    Srettha confirmed his agenda before parliament on Monday which included digital cash handouts, lowering energy prices and relaxing visa rules to boost tourism.

    But Move Forward, the progressive opposition party that won the election but was blocked by army-backed lawmakers from forming a government, said Pheu Thai’s plan lacked specifics.

    “This is aimless. There are no clear goals, no time frame and budget,” said Move Forward legislator Sirikanya Tansakul, during a marathon debate scheduled to end late on Tuesday.

    “The policy statement needs to have details … it should not be a wish-list.”

    The new administration adopts an economy that is expected to grow 2.8% this year, below a previous forecast of 3.6%.

    Srettha, who is also finance minister, said his signature policy – a 10,000 baht ($282.09) giveaway via a digital wallet to all Thais over the age of 16 – would “re-awaken” the economy.

    “We will inject capital into all dimensions of the economy, to create spending, improve lives and create opportunities for businesses and employment,” he said, adding it would lay down a digital foundation for the country.

    But some questioned its sources of funds for a project that will cost 560 billion baht ($15.80 billion), including Move Forward’s Sirikanya, who asked if political newcomer Srettha intended to “start governing by destroying fiscal discipline”.

    The Democrat Party’s Jurin Laksanawisit, who was recently commerce minister, asked what had happened to some of the pledges made to the public to win votes.

    “You promised a 25,000 baht salary for new graduates, but it is not mentioned,” he said.

    “Is this a ninja policy that just disappears?”