Proposed 10,000 Baht Handout Scheme Generates Controversy Over Debt Impact
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The government's proposed 10,000 baht digital wallet handout scheme has generated controversy, with critics concerned about its impact on public debt.
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Supporters argue stimulus is needed to boost Thailand's stagnant economy, but opponents question the urgency and effectiveness of cash handouts.
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The scheme may require revising the government's medium-term fiscal plan and could raise the public debt-to-GDP ratio to 66-67% from 61% currently.
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Credit rating agencies have warned the increased borrowing could negatively impact Thailand's credit rating.
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Some analysts believe the digital wallet scheme will fall short of its aims to stimulate growth to 5% and question its fiscal sustainability.