Prime Minister Srettha Thavisin says he has yet to discuss the government’s 500-billion-baht handout with Bank of Thailand governor Sethaput Suthiwartnarueput after the latter repeated his opposition to the project.
The prime minister acknowledged on Thursday that he and the central bank governor had a difference of opinion that would have to be discussed.
He was responding to comments Mr Sethaput made in an interview with Bloomberg, in which he said he saw no need for such a large across-the-board economic stimulus.
The government plans to hand out 10,000 baht in digital money to each of about 50 million Thais later this year.
Mr Sethaput has suggested that the handout be limited to the country’s 15 million welfare cardholders.
Mr Srettha said on Thursday that the handout project would stimulate economy at the regional level because recipients would be required to spend the money in their home districts.
“When the project launch date is clear, I believe that industries and SMEs will speed up production to meet this purchasing power. This will stimulate the economy,” the prime minister said.
The opposition warned the government of the high risk of excessive borrowing, largely due to the cost of the digital wallet programme, as the debate on the fiscal 2025 budget began in parliament on Wednesday.
Asked if the handout would affect the government’s debt repayment ability in the future, Mr Srettha said the short-term economic stimulus would precede other stimulus policies that would draw investment from multinational companies.
Then there would be employment and industrial upgrades that would increase gross domestic product, and consequently the government could cover its obligations, he said.
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