Bangkok: The Council of State has emphasized the necessity for stricter fiscal discipline, highlighting the increasing need for disaster relief budgets. They caution that excessive spending under Section 28 could heighten the fiscal burden and elevate financing costs, potentially affecting the country's credit ratings.
According to Thai News Agency, Mr. Pakorn Nilapraphan, Secretary-General of the Council of State, disclosed that the Cabinet meeting approved a proposal from the Ministry of Finance concerning guidelines for managing projects under Section 28 of the State Fiscal Discipline Act B.E. 2561 (2018). The Prime Minister discussed the nation's budget spending situation and fiscal discipline, stressing the importance of establishing clear guidelines for disciplined budget expenditures.
The government is constrained by limited financial resources and faces the necessity of substantial spending, particularly on disaster management. As noted by the Prime Minister, this budget has been steadily increasing annually, necessitating the establishment of clear guidelines.
The Secretary-General further explained that subsidies provided via state enterprises, followed by repayment, impose a fiscal burden and diminish fiscal space. The consequences of excessive spending are clear; increased spending reduces fiscal space, affects interest rates, raises the country's financing costs, and could potentially impact its credit rating. Therefore, it is crucial to exercise greater caution, as increased debt in this area will elevate the country's financing costs. This approach would enable the government to manage its fiscal burden more effectively in the future.