Bangkok: Amidst an economic situation influenced by the Middle East crisis affecting energy prices, Dr. Supavud Saichue disclosed a plan to issue an emergency decree authorizing the borrowing of 400 billion baht. This initiative is expected to be presented to the Cabinet as a critical mechanism to support and restructure the country.
According to Thai News Agency, the loan is allocated to three main objectives: mitigating the impact of the Middle East crisis through "Thai Helps Thai Plus" measures, transitioning to clean energy, and developing human resources to cope with the AI era. The "Thai Helps Thai Plus" program aims to expand its target group from 20 million to 30 million people, providing each with 1,000 baht per month for four months, costing approximately 150-170 billion baht. Additionally, the state welfare card amount will increase to 1,000 baht per month for the same period.
The transition to clean energy emphasizes providing soft loans for solar panel installations and the purchase of electric vehicles to reduce long-term energy costs. Human resource development focuses on upskilling and reskilling for the AI era. However, Dr. Supavud expresses concern over the lack of clarity in this area and fears it may replicate existing government projects.
Dr. Supavud analyzed that Thailand's fiscal situation is tight, with cash reserves at 240 billion baht as of March. Borrowing 400 billion baht would push public debt above the 70% of GDP ceiling. Raising the debt ceiling to 75% is possible under the Fiscal Discipline Act, requiring minimal committee approval. Dr. Supavud believes this step is essential to avoid reducing economic stimulus amid the energy crisis.
Electricity costs are another critical issue, with Thailand's electricity cost at 4.7 baht per unit. Dr. Supavud highlights the potential of solar cells, which produce electricity at about 2 baht per unit, to restructure electricity pricing. The government plans to support solar cell use through measures such as a one-stop service for permit applications, net billing for excess electricity purchase, and promoting floating solar power generation.
In summary, the emergency decree for borrowing 400 billion baht aims not only at providing temporary relief but also at building a sustainable future. Transforming the energy structure towards solar power and developing skills for the AI era are pivotal for sustainable national wealth.