Increasing the 2024 fiscal budget by 122 billion baht is crucial to stimulate the economy, Prime Minister Srettha Thavisin said on Wednesday, as he proposed a supplementary budget bill to the House to help fund the digital wallet scheme.
However, the opposition parties said they would vote against the bill as it raised legal concerns, including possible violations of the State Fiscal and Financial Discipline Act.
Mr Srettha said the additional funding is urgently needed to boost economic activity, maintain consumption levels and create business opportunities for individuals and the business sector.
The handout of 10,000 baht in digital cash to as many as 50 million Thais, the signature policy of the Pheu Thai Party, is scheduled to start in October, with registration to open on Aug 1.
Mr Srettha said the government cannot wait for the disbursement of the 2025 fiscal budget starting in October, so he had decided to increase the 2024 budget by 122 billion baht to fund the handout and address the sluggish economy more quickly.
Of the amount proposed, 10 billion baht would come from tax revenue and 112 billion from a loan, he said, noting the increase would raise investment spending in the 2024 budget from 17.1% to to 22.4%.
“The money would be spent through the digital wallet handout, and be assured the spending plan is in line with the State Fiscal and Financial Discipline Act,” he told the House.
The economy is forecast to grow 2-3% this year due to increased spending, public investment, the recovery of the tourism and service sectors and through export growth, he said. However, he acknowledged risks and limitations owing to high household debt, business sector debt, as well as the volatile global economic situation.
Mr Srettha said the country’s financial status remains strong, with public debt as of April 30 this year at 63.8% of gross domestic product and a Treasury balance of 394 billion baht as of May 31.
“The government will strictly adhere to fiscal and monetary discipline and make sure the money is spent properly to stimulate the economy and foster sustainable growth,” he said.
Sirikanya Tansakul, deputy leader of the opposition Move Forward Party, said the supplementary funding request for the digital wallet risks violating State Fiscal and Financial Discipline Act clauses.
She said the law requires the additional budget to be disbursed within the fiscal year, which means by Sept 30. However, the 10,000-baht handout is expected in the last quarter of this year.
She said that the Aug 1 registration date should not be considered as initiating debt obligations to justify a delay in budget disbursement.
Ms Sirikanya warned that some agencies might try to follow suit if they cannot not disburse funds before the fiscal year ends, while also questioning if the digital wallet scheme qualifies as investment spending.
