Public debt, false forecasts will put Thailand in crisis: Pheu Thai

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Second, he added, the budget for servicing public debts has exploded. According to the budget bill, the Public Debt Management Office will be allocated 192.13 billion baht to cover interest and borrowing costs, which is three times higher than the part of the capital it must repay during this fiscal year.

This shows that a large part of taxpayers’ money will be used to service public debts, he said. Worse still, he added, the government will continue to create public debt and its recent borrowing will not contribute in any way to the country’s revenue.

The third problem, he pointed out, was that the spending proposed by government agencies was based on daydreams about the economic outlook. While the panel sees a negative outlook, government agencies think otherwise.

“It’s like we live in different countries,” he said.

Paopoom added that the 2023 budget bill was based on projected GDP growth of 3.7%. However, he said, these figures were calculated several months ago before many negative factors hit the country, such as rising inflation and a hike in the US Federal Reserve’s key rate.

Fourth, he said, the Revenue Department has missed its revenue target every month this year. So far, he said, he has missed the 26.5 billion baht target.

What’s worse, he added, is that the department will hurt the investment atmosphere by continuing with its plan to collect taxes on trading in stocks and digital assets, and collecting no taxes. on successions.

The fifth point mentioned by Paopoom was the fact that state banks had not helped small and medium enterprises as they should have. Instead, he said, they were more focused on making profits and reducing non-performing loans.

The sixth and most worrisome sign, Paopoom said, is that this budget bill will create a deficit that will approach the ceiling due to the government’s inflated figures for possible revenue and GDP. He said the situation would get worse if the finance ministry was forced to raise the policy rate due to negative external factors.

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