Four govt economic plans could be affected by Srettha’s removal

Political analysts believe four main economic plans under the Srettha-led government could hit a snag if the premier were to be removed following a petition filed by senators.

Six of the nine Constitutional Court judges on Thursday voted to accept the petition from 40 senators seeking to remove Srettha as PM. The petition accused Srettha of violating political ethics by appointing Pichit Cheunban as PM’s Office Minister even though he had been once jailed for contempt of court.

The court’s decision sparked fear among political gurus that the removal of Srettha could throw a wrench in economic plans that he has been spearheading since the former property tycoon took office in August last year.

Krungthep Turakij reached out to them for an interview and summarised four projects that could be affected if Srettha were forced out, as follows:

1. Short-term economic stimulus plan, including the 500-billion-baht digital wallet scheme for eligible Thais, which is one of the ruling Pheu Thai Party’s biggest election promises. After several delays, the disbursement is expected to start in the fourth quarter of this year. Without Srettha at the helm, the scheme designed to stimulate domestic spending could be further postponed.

2. Economic restructuring plan to boost Thailand’s GDP expansion. Srettha is committed to improving the country’s economic growth and was especially concerned after Thailand’s GDP in Q1 2024 grew only 1.5%, the lowest rate among ASEAN members. The PM promptly scheduled a meeting with cabinet members in the economic sector on Monday to tackle this issue, which will be the first such cabinet meeting of this government.

3. Disbursement of fiscal budget 2024. The government has yet to finalise where the remaining 1.5 trillion baht of government expenditure will go, 500 billion baht of which has been earmarked as an investment budget. Furthermore, the draft of fiscal 2025 that amounts to 3.752 trillion baht is up for consideration in the Parliament from June 5.

4. Flood prevention plan due to the La Nina phenomenon that is expected to start between June and August and will bring increased rainfall. Water resource management and flood prevention are key to securing the growth of the Thai economy which relies heavily on agricultural products for both consumption and exports.

On Thursday, Srettha, who is on a mission in Japan, told reporters that the court’s decision to accept a petition against him will not affect his duties either overseas or at home.

"We already have missions, and we must follow them correctly. The issues at home need to be addressed, and there's a team already assigned to handle them. It's common in politics,” he said.

The PM added that the issue raised by senators is “something we must acknowledge and clarify to the public".

Meanwhile, Deputy Finance Minister Julapun Amornvivat told reporters on Thursday that the court’s decision should not affect the PM’s work on the economic front, as the court did not order Srettha to suspend his duties.

“The PM is still working at full capacity to fix the problems faced by Thais. After he returns to Thailand he will be continuing the projects that the government has started,” he said.