PBO highlights concerns with FY2024 budget bill
Concerns are being raised about impacts on the economy, society and the environment from the government’s 3.84 trillion baht budget bill for fiscal year 2024 economy, according to the Parliamentary Budget Office (PBO).
On the economic front, the digital wallet cash handout scheme could prove a financial burden and force a decline in the budget for the next fiscal year.
The government should carefully structure the scheme to ensure the efficiency of debt repayment and revenue generation, advised the PBO.
The bill also has potential societal effects, including impacts on related to ageing, poverty and inequality. These, as well as, public health expenses are likely to increase the burden on the government.
A holistic approach needed
A holistic approach is required by the government to ensure economic stabilty, PBO advised, adding that the government should develop cities, diversify prosperity, promote education and develop the labour market to tackle poverty.
On the environmental front, the PBO advised the govenment to set up measures to deal with the El Niño phenomenon’s impact on the economy, covering industrial and agriculture sectors.
As investment expenditure is lower than 20% of the total budget, PBO advised the government to improve working efficiency among personnel and apply technology to reduce expenditure and increase the government’s revenue.
Meanwhile, as debt per gross domestic product has increased by 1.3 trillion baht in 2022 compared to 2021 and is likely to increase further, the PBO advised the government to pay attention to worthiness, benefits, debt repayment ability and interest burden while borrowing loans.
Increase over 2023
The budget bill is being considered by members of Parliament on Wednesday, which increased by 295 billion baht over the 3.18 trillion baht in the fiscal year 2023.
Of this, 606.76 billion baht is allocated to the central budget, followed by 353.12 billion baht for the Interior Ministry, 328.38 billion baht for the Education Ministry, and 327.15 billion baht for the Finance Ministry.
Meanwhile, the government expenditure will total 2.5 trillion baht, including 710 billion baht for investment, 118.32 billion baht for loan repayment and 118.46 billion baht for treasury repayment.
Apart from the specific personnel expenditure of 785.95 billion baht, accounting for 22.6% of the budget, personnel costs are also included in the central budget of 500.16 billion baht.
Of personnel expenditure in the central budget, 329.43 billion baht is for annuities, gratuities and pensions, 11 billion baht for civil servant promotions, 440 million baht for employee contributions, 78.77 billion baht for civil servant reserves, contributions and compensations, as well as 4.52 billion baht for civil servant and employee financial assistance, and 76 billion baht for medical expenses.
In addition, 62.33 billion baht is allocated as a subsidy for local organisation officials.
