The fiscal budget 2024

Chatrudee Theparat

The fiscal budget 2024 and borrowings are prepared for the 10,000-baht digital wallet scheme.

The government has planned to allocate its fiscal budget 2024 and borrowings for implementation of the 10,000-baht digital wallet scheme which is expected to cost 550-560 billion baht in total.

Prime Minister's Secretary General Prommin Lertsuridej said the government will provide the fiscal budget 2024 and borrowings to spend in the 10,000-baht digital wallet scheme. He said the scheme would not affect the fiscal and monetary framework and Thailand’s credit ratings because the government would manage its repayment carefully with a strict and clear timeframe. For example, if the government allocates 300 billion- baht of the scheme, the government will repay its loan within three years, with each of 100 billion baht annually.

“The agency involved with the fiscal and money policy has already confirmed to the government with a clear message that having no impact on the country’s credit ratings if the government go ahead the scheme with a clear repayment plan.’’

In addition, the fiscal budget 2024 is expected to be delayed for six months. There is more room for the government to allocate the remaining budget to use in the scheme because such an amount is expected not to disburse by September, 2024.

“The government will certainly implement the scheme in order to compensate income loss among Thais during the outbreak of Covid-19. Thai economy has yet recovered to the pre-Covid level while Thai economic recovery shows the slowest momentum in Southeast Asia due to the burden of public debt which currently represents 91.6% of GDP, as the world’s seventh highest.”

He explained that Thai people can use the 10,000-baht digital wallet as a tool to generate income. For example, each family could gather as a group to set up their shops in the community and each group could purchase production factors for their farms. And new generation could work together as a group to implement their start-ups.

“Once the consumption is stimulated, production capacity is expected to increase from currently 60%, along with better job creation scenario and more industrial production. And finally the government can collect more revenue in the form of taxes.”

The government still keeps its projection unchanged that the scheme can boost Thai economy next year to reach at least 4%. The government also plans to achieve its economic growth of average 5% during four years in office, encouraged by policies from debt suspension to farmers, foreign investment, supporting community business, start-up promotion, as well as strongly promoting tourism industry.