The government’s plan to borrow 2 trillion baht for transport development projects is illegal, dodges normal spending examination and will lead to losses to the nation, financial figures told the charter court.
The court was earlier asked to rule on the constitutionality of the government’s bill to authorise the Ministry of Finance to borrow 2 trillion baht to pay for transport development projects.
Opponents argued the special borrowing bill would enable the government to borrow money without including the in the national budget. As such, parliament would not be able to examine the spending.
The court listened to comments from financial figures yesterday, among them Pisit Leeahtam, former deputy finance minister and charter drafter. He told the court the borrowing bill violated the 2007 constitution which required that government spending must be included in its annual budget bill so it would be transparent and subject to examination. He also warned the borrowing bill could result in tax hikes as the government moved to repay the debt.
The Constitution Court asked Mr Pisit about the pros and cons of the borrowing bill. He said it showed the government intended to develop modern mass transit systems and improve national development but it also would make the spending non-transparent and violate the constitution.
Testifying next was former finance minister Thanong Bidaya. The court asked him if the borrowing constituted ''national money'' as defined by the government loan act.
Mr Thanong said the bill was written with the intention of making the sum not national money because the borrowed sums would not be included in any national budgets.
It would enable the Ministry of Transport and the Ministry of Finance to withdraw money without being examined under normal budgetary procedures, including examination by parliament. They would be required only to report their spending for parliament’s acknowledgement, the former finance minister said.
Mr Thanong said money under the borrowing bill should be considered national money and he wondered why the government wanted to keep it outside the normal budgetary process.
"If the bill is passed, other ministries will follow suit, which could have serious impacts on debt management, Mr Thanong said.
"The constitution says the government's economic plans must be based on the sufficiency economy and the national interest. Now is not the time for a high-speed railway.
"The money would be better spent on trains for the masses and agricultural and educational development,'' he said.
"High-speed trains really need really straight routes. That is impossible on our winding terrain. If the money is invested in better trains for the masses that reach the outer provinces, we can save 400-500 billion baht," Mr Thanong said.
Former finance minister Thirachai Phuvanatnaranubala said the passage of the 2-trillion-baht borrowing bill would harm the monetary and fiscal systems, fiscal discipline and the nation's credit rating.
Negative impacts on the national credit rating would make it difficult for the government to sell its bonds and woo investors, he said.
The court yesterday told parties involved to file their closing statement by Feb 27.