Kiatnakin Phatra Securities’ chief economist issued a stark warning over the government’s increasing reliance on fiscal budget deficits, cautioning that such an approach could harm the economy over an extended period. Pipat Luengnaruemitchai openly criticised the government’s latest populist strategies, including a digital money initiative and reduced oil costs, stating that these measures could erode fiscal discipline.
He further warned that these policies might lead to increased financial burdens for businesses and even trigger a re-evaluation of the country’s credit rating. Last week, the Srettha Thavisin-led administration announced an increase in the annual budget deficit, which now stands at over 693 billion baht. Meanwhile, the government’s revenue is expected to see only slight growth.
In a significant departure from previous…
