Warning about giving away digital money The government must bear additional interest.

Korn’ warns that giving away 10,000 baht of digital money will mean the government will have to bear additional interest. Pointing out that everything has a cost, that is, there is a ‘price that must be paid’.Mr. Korn Chatikawanich, former leader of t…

Korn' warns that giving away 10,000 baht of digital money will mean the government will have to bear additional interest. Pointing out that everything has a cost, that is, there is a 'price that must be paid'.

Mr. Korn Chatikawanich, former leader of the Chart Patthana Kla Party Private Facebook post "Korn Chatikavanij" stated that with economic stimulus policy and fiscal burden While debating the policy of stimulating the economy with 10,000 baht digital money, please pay close attention to the latest estimates of the country's financial status. that the Ministry of Finance will present this set of estimates at the first Cabinet meeting of #Seththa government that government income increases But expenses increased more than The government will therefore run a larger deficit (3% of GDP, previously expected to drop to 2.8% next year), while the economy will grow more slowly than originally expected. Therefore, the ratio of public debt to GDP is much higher (64% vs. previously 61. 35%) This new estimate is causing serious concern among economists. Because everything has a cost, that is, there is a 'price that must be paid'. This price is evident in the government's increased interest costs. For example, the 10-year government bond interest rate has already surpassed 3%, increasing more than 50bps in the past few weeks. And this estimate does not include the government's policy of giving away 10,000 baht, which, however, the government must borrow. or borrow from state enterprises to distribute

“Today, government debt is 11 trillion baht. The government must issue new bonds to pay off old ones all the time. which costs will only increase It is a greater burden on the budget. The trend of our interest rates will continue to rise. with a variety of factors such as sluggish exports Higher world oil prices including government expenditures from policies New government 'economic stimulus' Our strong point is We have almost no foreign currency debt. However, we are part of the world's economic system. You can't be careful,” Mr. Korn stated

Source: Thai News Agency