In his first policy statement to parliament yesterday, Prime Minister Srettha Thavisin likened the country to a "sick person", for which the government needs to prescribe cures such as the 10,000-baht digital cash handout and reduced energy prices.
He said Thailand's longstanding economic, social and political problems have been made worse by the Covid-19 pandemic, and the nation has yet to fully recover from its effects.
Poverty and inequality are not only keeping the country from realising its full potential, but they have also caused a crisis in public confidence, and it is the government's aim to address these issues and lay the foundation for the country to move forward, he said.
Mr Srettha also said the country's economy has also been affected by the changing geopolitical situation, as well as the rivalry between the world's superpowers. As such, Thailand must strategically position itself to protect its interests.
With household debt exceeding 90% of the nation's gross domestic product, while public debt standing at 61% of GDP this year, the nation's economy is particularly fragile, the PM added.
To boost growth, the premier said the government has prepared immediate and short-term economic stimuli, including the 10,000-baht digital money handout and other measures meant to solve farmers' and small- and medium-enterprises debt burden.
He assured the measures would neither breach the nation's financial discipline nor ruin the government's ability to repay its dues.
In his speech, he defended the government's plan to temporarily waive visa requirements for Chinese citizens and fast-track visa applications of individuals hoping to take part in international events, saying the tourism industry is key to creating jobs and generating income.
"Thailand is like a sick person... Tourism and spending are recovering so slowly that there is the risk of economic recession," Mr Srettha said.
He also pledged to bring down the price of oil, cooking gas and electricity, and find alternative sources of energy.
Mr Srettha also said another one of his government's key policies is to protect the institution of monarchy and chapters related to the institution would not be revised in its charter amendment bid.
He insisted that public input will be sought in the process to ensure the charter is democratic and acceptable to all sides.
Opposition responds
Move Forward Party (MFP) deputy leader Sirikanya Tansakul said the government's policies lacked clarity and have vague objectives which implied a lack of confidence to successfully implement them.
She questioned the source of funds for the digital wallet scheme, saying the government's revenue stream is unlikely to be adequate so the government might need to borrow to offset the deficit. MFP list-MP Woraphop Viriyaroj called on the government to adjust the digital wallet programme to make it beneficial to SMEs, otherwise large businesses would reap the benefits instead.
He also asked the government to improve SMEs' access to loans so they can remain competitive.
Acting Democrat leader, Jurin Laksanawisit, meanwhile questioned why several election campaign pledges, such as a minimum guaranteed income for new graduates and a daily minimum wage rate of 600 baht went missing from the policy statement.
Mr Jurin also called on the government to uphold the rule of law, saying it would only happen when the law is equally enforced to both the rich and the poor.
"If the previous government did something wrong, yours should make it right instead of letting it pass. Don't create new standards and discourage people," he said.
Digital cash 'well thought out'
Pheu Thai's digital wallet programme was the focus of the first day of the two-day debate on the government's policies.
Deputy Finance Minister Julapun Amornvivat defended the digital wallet pledge, saying it was not a populist policy to attract voters during the election campaign, but a well-thought out plan to revitalise the economy.
He said the programme would not undermine fiscal discipline and that businesses of all sizes can take part.