Bangkok: Academics point out that the 500 billion baht loan decree is a tool to prop up the economy. Academics emphasize that the 500 billion baht loan decree, enacted in response to the current energy crisis, is a crucial tool for economic support, intended not only to revive the country in the short term but also to establish a robust foundation for the future. They stress the importance of utilizing this budget with efficiency and fiscal discipline.
According to Thai News Agency, Associate Professor Olar Thinbangtiao from the Faculty of Political Science at Burapha University has expressed support for the emergency decree facilitating the borrowing of 500 billion baht, aimed at stimulating the economy amid the global energy crisis. He remarked that the policy is well-suited to the current circumstances and serves as a necessary fiscal instrument to mitigate the impacts of external pressures. He highlighted the volatility of the global economy, particularly the escalating tensions in the Middle East, which have led to rising energy costs. Given these challenges, proactive government measures are essential, as the regular budget cannot sufficiently address emergency needs. Consequently, the decree for borrowing is seen as a vital mechanism to allow the Thai economy time to recover.
The loan is expected to invigorate the economy in the short term by injecting liquidity into individuals and businesses, with a focus on low-income groups and SMEs that typically have a higher propensity for spending. This is anticipated to generate an economic multiplier effect, sustaining consumption and mitigating the risk of a prolonged economic downturn. Efficient government spending could also extend into investments in critical infrastructure, such as energy systems, technology, and digital infrastructure, enhancing national competitiveness and reducing susceptibility to future crises.
Moreover, the borrowing underscores the role of the state in ensuring social justice by distributing resources to support affected populations, alleviate inequality, and maintain social stability during periods of elevated living costs.
Associate Professor Olar further asserted that if managed within a framework of fiscal discipline, the borrowing will not compromise long-term stability; instead, it will bolster investor confidence and reduce economic risks. He stated, “In a crisis, doing nothing may be worse than making proactive decisions. Therefore, issuing this emergency decree for borrowing money is a choice of the appropriate tool to support the economy and lay the foundation for long-term recovery.”