Cabinet gives a green light to issue additional expenditure of 2024 fiscal budget in a bid to provide budget for digital wallet scheme.
Deputy prime minister and Finance Minister Pichai Chunhavajira said that the cabinet approved additional fiscal budget 2024 and a calendar to conduct additional budget 2024. The government planned to allocate additional budget to stimulate the economy by an implementing the digital wallet scheme.
The next step, the government is a schedule to held a meeting as soon as possible of the State Fiscal and Financial Disciplines Committee chaired by Prime Minister Srettha Thavisin following on the State Fiscal and Financial Disciplines Committee Act,B.E.2561.
The committee needs to adjust a framework of fiscal and financial framework in medium term. The solution will be acknowledg to the cabinet this May 28.
Mr Pichai said the cabinet has assigned the finance ministry and the Budget Bureau to provide 500 billion baht budget for the cash handout scheme.
Both agencies had been discuss the appropriate solution of the source of fund. The best solution is the government to issue a draft of additional budget bill 2024.
However, the government must consider three main laws including the Fiscal Budget Act, the State Fiscal and Financial Disciplines Committee Act,B.E.2561. Fiscal Discipline Act. The most important thing is the public debt framework. The public debt is requir to not exceeding 70% to GDP.
The National Economic and Social Development Council(NESDC) reported as of the first quarter, the public debt to GDP was 63.4% to GDP.
Pichai, Thai economy growth in Q1 is quite low
Mr Pichai said the economic growth in the first quarter grew by 1.5%, the lowest growth in Asean. This matter is therefore a necessary for the government to stimulate the economy in the short term.
He said Thai economic restructuring need to be reform in order to boost for the economic growth in long term. However, economic restructuring takes a long time.
The government also needs to attract for new investment especially new technology industries.
The Government House source said the additional budget in fiscal budget 2024 is expect amount 122 billion baht.
Paopoom accepted additional deficit budget in 2024
Mr Paopoom Rojanasakul, deputy finance minister said source of funds to carry out the digital wallet scheme is set of 175 billion baht from fiscal budget 2024.
At this time, the solution to provide the budget is from the central budget in fiscal budget 2024 and a conducting additional expenditure of fiscal budget 2024.
In the part of issuing additional budget Add to the central budget that year, it was acknowledg that additional budget deficit recovery was requir. However, it will be within the disciplinary framework. Financial matters and we use this budget To stimulate the economy, which will also cause GDP to expand.
Therefore, it will be view in terms of lack of fierceness. You cannot increase the budget alone. But you have to look at putting money into it. The economy expanded from this measure as well.
To the question that if there was additional deficit of the fiscal budget 2024, it would cause for tightening in the bond market because the government wants to raise fund through an issuing bonds. Mr Paopoom said that the government has been discuss the Public Debt Management Office on the issue.
“There is no problem in this matter because the digital wallet project
is designed for people to spend money and create for multiplier effect from the spending of the people. Shops will create a multiplier effect as the second round. The government can manage the liquidity without any problems.”
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