Parliament, “Sathit” advises the government to call Ministry of Finance – NESDB – Financial Discipline Committee Interpreting the economic crisis I’d like to compare it to a loan of 500 billion baht, causing the public debt to skyrocket. Is it worth it in exchange for an economic growth of 0.6?

Mr. Sathit Limpongphan senator Referring to the case where Mr. Chulaphan Amornvivat, Deputy Minister of Finance, revealed that the Council of State is of the opinion that the Act borrowing 500,000 million baht to carry out the digital wallet project of 10,000 baht can be done. The decree is of the opinion that this can be done. But must be subject to the conditions of the Fiscal Policy Act, Section 53 relates to national crises and Section 57 relates to the worthiness of operations. The term general crisis must be a clear and long-lasting economic recession. Including the country facing difficulties. There are three key elements: severity and length of slowdown. Including the extent of the impact is wide and spread w
idely in various sectors. and there are problems of financial instability, such as bank failures or sharp declines in asset prices. But some people may only view the economic slowdown for several consecutive quarters. Or compare between this quarter this year and this quarter last year. If it is negative, it is considered a crisis. So it depends on the definition. What will it be like?

‘The best way for the government should be to call a meeting of the country’s economic agencies, finance, NESDB, and the Bank of Thailand. to consult and agree that What is the definition of the economy according to the Monetary and Fiscal Discipline Act? Has it reached a crisis point yet? Because if we do not make it clear, there is a risk that there will be many verbal and legal disputes. This will be a risk that will occur to current and future operators,’ Mr. Sathit said.

Mr. Sathit said that regarding value for money We need to see how much of an impact this will have on public debt. Because it is expected that the econo
my will expand by 3.2 percent, which the Bank of Thailand It was predicted that If 500 billion baht is added, the economy may expand up to 3.8 percent, meaning there will be an economic expansion of up to 0.6 percent. But on the other hand, the country’s public debt status must be assessed. Which is currently at 62.4 percent of GDP, but if another 560 billion baht is borrowed, it will result in an increase in public debt to 64 – 65 percent. The government must compare whether stimulating the economy to grow by 0.6 will be worth it. Will there be a loss of fiscal space from rising public debt?

As for whether the government should reconsider the issuance of the 500,000 million baht loan act, Mr. Sathit said the Fiscal Discipline Act. It is clearly stated that In the event that the economic stimulus project cannot be implemented with the available budget. can be issued as an Act can get a loan, which in this part will result in adding 500,000 million baht to the economic system and will cause the economy to gro
w by approximately 3.2 percent, but if a normal annual budget is used It will not affect economic expansion.

Source: Thai News Agency