Bangkok: "Thirachai" has criticized the flagship policy of handing out 10,000 baht as a failure to stimulate the target, stating that GDP has barely moved. He pointed out that people are using the funds to pay off debts and save, rather than spending, resulting in a lost opportunity to use the budget for sustainable development. Mr. Thirachai Phuvanatnaranubala, co-chairman of the Policy and Academic Center of the Palang Pracharath Party, expressed concerns about the 10,000 baht cash handout policy of the Paethongtarn government, labeling it as a 'project that does not meet the economic stimulus target'. He noted that the policy involves a substantial budget of 185 billion baht, yet the economy 'does not move', failing to achieve its intended goal. He also raised concerns about the potential waste of budget while citizens continue to grapple with high living costs and low income.
According to Thai News Agency, Thirachai stated that the government anticipated the project would boost GDP growth by 0.35%, but the actual results were 'disappointing'. The Thai economy grew by only 3.2% in Q4/2024, barely different from the previous quarter's 3.0%. He highlighted minimal growth in private consumption and total investment.
'Big handouts but low returns. The economic multiplier is only 0.1-0.3 times, meaning that the government has handed out 185,552 million baht in both phases, but has created less than 60,000 million baht in economic circulation,' Thirachai explained. He cited a National Statistical Office survey indicating that over 12.8% of recipients used the funds to pay off debts, while another 11.4% saved it. The remaining money was spent on daily necessities such as food, water, and electricity bills, which are recurring expenses. This resulted in no 'new consumption' that could effectively stimulate the economy. Thirachai identified high living costs, insufficient income, and soaring household debt as the real roots of the economic problem, which the government overlooked, causing the distributed funds to 'disappear' without strengthening the economy.
Mr. Thirachai questioned why the substantial budget was not allocated to projects that could enhance the country's potential, such as the Upskill/Reskill project or infrastructure investments that create jobs and long-term income, rather than just handing out money. He also suggested using the budget to address the issue of low rice prices.
Additionally, Mr. Thirachai referred to the two assistant finance ministers who confirmed the distribution of a third phase, but in digital money. He questioned whether this was merely a strategy to comfort the 16 million people waiting, since the finance ministry had not discussed the matter with the BOT regarding currency and payment system laws. If they failed to discuss, it might only create false hope for people waiting for the third phase.