Thai PM Srettha Defends Debt Plan for $14 Billion Cash Handout
- Borrowing to fund handout won’t exceed 70% debt cap, PM says
- Srettha’s statement comes as criticism grows against stimulus
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Thailand’s Prime Minister Srettha Thavisin defended a controversial plan to borrow billions of dollars to fund a cash handout program, saying Southeast Asia’s second-largest economy is in a crisis and needed a stimulus to end a cycle of low single-digit growth.
Srettha’s administration last week unveiled plans to distribute 10,000 baht ($277) each to about 50 million Thais as a one-time measure to stimulate consumption and spur business activities. The so-called digital wallet program that will cost 500 billion baht will be funded through state borrowing and a special bill will be passed by parliament early next year to facilitate the fund-raising, according to Srettha.