Plan for the ageing
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Plan for the ageing

Against much advice and common sense, the Finance Ministry is now pushing even harder to take back old-age allowances from some elderly people.

The ministry first revealed its plan to strip 10 billion baht a year from aged citizens "to relieve the state's burden". Deputy Finance Minister Wisudhi Srisuphan has apparently received no pushback from the government. He has proceeded to order the Fiscal Policy Office to consider making the move final.

It is easy to see why Mr Wisudhi considers the allowances to be a problem. He probably feels caught between the proverbial rock and hard place. On one hand, the payments to 7.8 million citizens over 60 seem laughably small, and certainly not enough to live on. On the other, cumulatively, they represent billions.

Here is the deputy minister's plan in brief. He would end payments entirely to any elderly person with an income of 9,000 baht a month or more and to those with assets totalling 3 million baht. He says this would save the state 10 billion baht a year.

While this amount is nothing to sneeze at, it is comparatively a small drop in huge bucket. For example, the budget for the 2017 fiscal year was introduced last week. Prime Minister Prayut Chan-o-cha and ministers have increased the military budget by 40 billion baht over the previous year's total allotment of 174 billion -- for armed forces with no declared or likely enemy. The total budget is 2.71 trillion baht.

Do the maths. If Mr Wisudhi grabs back the full 10 billion baht from the elderly who need it, he will be saving less than 5% of the military spending. Overall, his justification in taking between 600 and 1,000 baht a month from an elderly person is that he is saving a minuscule 1% of government spending.

In order to qualify for the maximum living allowance of 1,000 baht per month, a Thai citizen must be over 100 years old. By any measure, the state can afford to pay every centenarian that tiny amount without breaking the bank. It can also pay people in their 90s an allowance of 900 baht per month, folks in their 80s the tiny amount of 800 baht and so on. The problem isn't lack of money. It's a lack of heart in taking back what has already been granted, and a lack of planning.

The ageing society is very much a problem in Thailand, and growing quickly. Nearly 15% of Thais are now 60 and above. Successive governments have mostly played ostrich on the issue. The living allowance is an exception, started in 1992 under then-prime ministers Anand Panyarachun and Chuan Leekpai. Each government after that has expanded eligibility and payments, until this one. This government wants to take back a benefit. The fact the individual payments are so tiny makes this seem even more cold-hearted.

The government should drop this plan and get back to the drawing board. A comprehensive, fair and inclusive plan for national social security is imperative. So is even better care of the most elderly among us. If old people are to be means tested, then the poorest should receive more, but not at the cost of stripping away what many older have come to depend on.

Thailand's elderly are not a burden on the state, as Mr Wisudhi's plan states. They are collectively and individually a national treasure. They have contributed the labour, brains and taxes that have brought Thailand to the point where it can plan and afford proper care for elderly people.

Editorial

Bangkok Post editorial column

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th

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