Srettha assures 2024 budget bill fits economic situation
Prime Minister Srettha Thavisin on Wednesday assured the House that the fiscal 2024 expenditures were calculated to be in line with economic circumstances, as well as possible environmental and geopolitical conflicts.
Srettha said that though the country enjoys a healthy treasury balance and foreign reserves, it must prepare a deficit budget with a built-in cushion to meet possible economic woes.
Debate on the bill kicked off on Wednesday morning and is scheduled to wrap up on Thursday, with the opposition and the government each given 20 hours of debating time.
After several opposition MPs questioned the proposed expenditures, Srettha took to the stand to defend the bill.
The bill seeks to allocate 3.48 trillion baht for expenditures by government agencies, while projected revenue is 2.787 trillion baht. The deficit of 693 billion baht would be offset by borrowing.
Srettha told the House that the fiscal 2024 budget bill would be a crucial tool of the government for driving policies that it has announced to Parliament.
He said the government had tailored the budget to the economic situation and the financial status of the country, as well as to national development strategies, master plans under those national strategies, the 13th national development plan, and the national security plan.
As of October end, the treasury balance, or cash on hand, of the government was 297.093 billion baht while the country had a strong level of foreign reserves of 211.75 billion US dollars. The reserves were 2.74 times higher than the country’s short-term international debt.
The prime minister added that as of October 31, the public debt stood at 11.125 trillion or about 62.1% of the gross domestic product (GDP), while the 2018 State Fiscal and Financial Discipline Act sets the ceiling of public debt at 70% of GDP.
Srettha noted that the public debt was caused mostly by the government’s guaranteed loans, which totalled 10.537 trillion.
He said the high projected spending was calculated by taking into account potential impacts on the economy due to El Nino or drought, along with the high level of household debts, a possible global economic slowdown, and the possible expansion of geopolitical conflicts.
