Govt fate hangs on loans decree

Govt fate hangs on loans decree

Arkhom brushes aside fears over debt

The House of Representatives will be dissolved if the executive decree to borrow 500 billion baht to combat the public health crisis is not approved by lawmakers, Deputy Prime Minister Wissanu Krea-ngam said yesterday.

He said the decree is expected to be tabled before the House in the next few days, and it will be up to the MPs to decide when it will be put the agenda.

Mr Wissanu said parliament will deliberate the budget bill for fiscal 2022 from Monday to Wednesday, and because the executive decree deals with financial matters, parliament may convene an urgent meeting on June 4 to consider the decree. However, it should be left to parliament to make the decision, Mr Wissanu said.

While the opposition parties are waiting for parliament to fix a date to deliberate the decree, they will have enough time to prepare for the debate to scrutinise it.

Finance Minister Arkhom Termpittayapaisith and Deputy Prime Minister Supattanapong Punmeechaow will explain the decree's details to parliament, Mr Wissanu said. Even if the decree is not endorsed by the House, there would be no problem because the decree has already taken effect after it was published in the Royal Gazette on Tuesday.

Asked whether the prime minister would have to dissolve the House if the decree fails to secure backing from a majority of MPs, Mr Wissanu said : "That's correct. It is traditional practice."

Mr Arkhom previously said the executive decree allowing the Finance Ministry to borrow 500 billion baht to solve economic and social problems arising from the Covid-19 outbreak is expected to stimulate economic growth in 2021-2022 by another 1.5%.

The decree is in compliance with Section 53 of the Fiscal Responsibility Act of 2018 and will be mainly spent on rehabilitating people's livelihoods and supporting the recovery of the virus-hit economy, he said. Of the 500-billion-baht loan, about 30 billion baht is earmarked for the procurement of medical supplies, drugs, vaccine shots, research and the development of vaccines, he said.

About 300 billion baht is set aside for funding relief schemes across various sectors, while the remaining sum will be allocated for social and economic rehabilitation projects. Mr Arkhom brushed off concerns about the country's fiscal soundness due to mounting national debt, saying the borrowing was appropriate.

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