Economics Consultant advised the new government to speed up taking care of labor problems Concerned about using the welfare state budget Proposal to increase VAT by 1%, suggesting to use the oil fund mechanism to manage diesel
Narongchai Akrasanee, former Minister of Energy spoke at the seminar “Economic problems awaiting the new government” that proposed an additional 1 percent increase in VAT from the current 7 percent. The government still needs money to develop many projects. Therefore, additional income must be provided. but should review the tax on entrepreneurial profits Because it is a measure that makes foreigners decide to move to invest in neighboring countries should use technology, online systems to serve the public tourist Because tourism is an important magnet that generates income into the country. Accelerating the problem of PM 2.5 dust, not to disturb the domestic tourism atmosphere
If the Ministry of Finance has not extended measures to reduce diesel fuel taxes After the expiration of July 21, 2023, see that diesel compensation measures when it comes to budgeting During the acting government, it had to be proposed to the Election Commission for consideration because it would bind it to the next government, so it was proposed that the Oil Fund It is an important mechanism to take care of oil prices in adjusting the price increase-decrease. driver uses oil must bear the burden The overall budget should not be used to compensate for diesel prices during this period.
in the fundamentals of the Thai economy considered to be very stable International reserves of up to 226,210 million US dollars. The proportion of public debt is 61.2% of GDP. The bank’s excess liquidity is 2.33 trillion baht. The bond market has a lot of liquidity to support private funding. in terms of public debt If it is increased to 70 percent, it can be pulled back to reduce to 60 percent in the next 10 years, it is considered that the Thai economy is very strong.
M.R. Pridiyathorn Devakula, former deputy prime minister, said he agreed with a zero-based budget. Because it makes me start thinking about spending important budgets from the beginning. But it should start in the next year. For the 2025 budget, the continuation of investment projects in the EEC area considered necessary to promote foreign investment Promoting 5G WiFi access to all communities Support for the formulation of various government policies
Mr. Supawut Saicheua, a senior economist, said that while waiting for the establishment of a new government If delayed beyond August will be an economic vacuum. long-term detachment Can’t form a government very worried Because if there is an important event that requires additional budget, the Election Commission must consider. For the welfare state policy of the MOU, the coalition government requires a budget of 6.5 billion baht. The welfare budget should not have a burden of more than 20 percent of GDP. from the experience of many countries around the world If the proportion is exceeded, it will be a dangerous threshold for the fiscal position. Therefore, it should be adjusted to Smart GOV.
Acknowledging that Thailand still has a risk of labor problems in the next 7 years, 11 million workers will be absent, or 1 in 3 of the current workforce. Thailand must accelerate the development of quality labor. or producing a large number of graduates Supporting the needs of the industrial sector, therefore, sees that the Ministry of Labor is very important in modern times. and may be more important than the Minister of Finance. In addition, the new government has to speed up many law reforms. to facilitate entrepreneurs and promotion of domestic labor For external factors, the US Federal Reserve may raise interest rates by 0.25 percent on June 24, 2023, as for the extension of the US bond repayment period. with a tendency to agree in Congress If something goes wrong Recognize that the US may face a recession.
Source: Thai News Agency