Bangkok: Amidst Thailand's continued sluggish economy and high dependence on external factors, the government faces a major challenge in pushing through economic stimulus measures via the 400 billion baht loan decree. Associate Professor Dr. Kiatianan Luangkaew from the Faculty of Economics, Thammasat University, provided insights into the necessity and concerns that the government must urgently address by educating the public.

According to Thai News Agency, the necessity of borrowing comes with question marks. Dr. Kiatianan acknowledges that issuing the emergency decree to borrow money is necessary from a numerical standpoint, given the limited state resources and the potential insufficient regular budget to stimulate the slowing economy. However, "the legitimacy of borrowing must be accompanied by clear data." If this money can generate sustainable growth and generate future tax revenue, it would be worthwhile. But if it's borrowed to solve short-term problems without a long-term plan, he believes it should be avoided, as it will create a burden.

The story further unfolds with the allocation of the first 200 billion baht, emphasizing the need for targeted relief efforts rather than mere handouts. Dr. Kiatianan analyzed that, given the high level of household debt, simply distributing money will not fully stimulate the economy. He suggested using the funds to preserve employment through wage subsidies for new graduates or providing conditional cash aid to encourage upskilling, aiming to enhance the country's capabilities.

The narrative transitions to the remaining 200 billion baht allocated for energy transition, which the professor views as an economic urgency. Delaying this transition could increase risks due to energy costs impacting living costs and competitiveness. The focus should be on restructuring to reduce costs for manufacturers and attract foreign investment, rather than merely building electric vehicles.

Addressing concerns about public debt potentially reaching the 70% GDP ceiling, Dr. Kiatianan stressed the importance of fiscal discipline by using borrowed money wisely. Investment in future income-generating ventures is crucial, even if the debt exceeds 70%, as opposed to borrowing for ventures that don't yield long-term growth.

Lastly, the warning signs of stagflation are highlighted, with the Thai economy entering a phase of economic stagnation despite rising living costs. The narrative concludes with a call for the government to communicate project details transparently, ensuring accountability and demonstrating how genuine economic restructuring will improve Thailand in the next three years.