The opposition warned the government of the high financial risk of excessive borrowing, largely due to the planned 500 billion baht digital cash handout, as the fiscal 2025 Budget Bill debate began in parliament on Wednesday.
Opposition and Move Forward Party leader Chaithawat Tulathon said the 3.75-trillion-baht budget tabled in parliament by the prime minister included 865-billion-baht in borrowing, which nearly reached the borrowing ceiling of the government.
The government would have little room for additional borrowing, only 5 billion baht. Planned borrowing for fiscal 2025 was up 7.8% on the previous year, the biggest increase in 10 years, Mr Chaithawat said.
"The repayment burden on the government will be heavier and the financial room left to the government will shrink if it needs to make an urgent payment or a large investment in the future," he said.
The opposition leader said the Budget Bill posed financial risks because it included spending on the government's digital wallet handout. The one-off payment was described as spending for economic stimulation and development and came from the government's contingency fund, he said.
"Economic turnaround cannot depend only on the stimulation of short-term consumption... This spending does not suit the national situation," Mr Chaithawat said.
"The budget allocation is the riskiest... The 'Ignite Thailand' policy turns out to be Ignore Thailand," he said.
Democrat Party leader Jurin Laksanawisit said the digital wallet scheme would raise the level of public debt. The government had apparently minimised spending in fiscal 2024 to keep money for the digital wallet plan.
This spending policy could limit gross domestic product growth this year, he said.
Presenting the bill, Prime Minister Srettha said the 2025 budget was aimed at maximum growth of the national economy in line with the government's vision to "Ignite Thailand".
He said the 10,000-baht digital wallet handout would reach 50 million recipients late this year and stimulate the economy at the grassroots level nationwide.
The prime minister said the country was financially healthy with foreign reserves totalling US$224.48 billion as of Dec 31, 2023.
The 2025 budget included 908.22 billion baht in investment, which formed 24.2% of the total budget and was the highest level proportionately in 17 years, Mr Srettha said.
Opposition leader Chaithawat Tulathon speaks in the House of Representatives on Wednesday. (Photo: Chanat Katanyu)