However, most of the experts share three main concerns. First, spending that ends with cash handouts to everyone without long-term economic development, technology development, or digital infrastructure development, could lead to excessive spending without pushing the Thai economy beyond its 3% potential growth.
Second, inflation. If money is used excessively in the system, supporting overspending, it may eventually lead to short-term inflation increases and make monetary policy more difficult amid a highly volatile global financial environment.
Third, the burden on the treasury. Although part of the urgent budget will come from the state banks, the money will become a long-term burden on the government and may result in higher public debt levels. The trend may move towards a 70% debt-to-GDP ratio if not managed properly.
If this stimulus results in good economic growth, there may…
