Thai populism, fiscal exhaustion

And a proposal to increase the collection of VAT from "Mr. Sommai Phasi", former Minister of Finance...

"Populist policies"

where various political parties are competing for votes to please the people.

In the view of former finance minister

"Mr. Sommai Phasee", former Minister of Finance

How likely is it?

And why is there a proposal to increase the rate of VAT collection?

to strengthen Thailand's current fiscal stability

You can listen to all these views through "

Thairath Online News Team"

today...

Mr. Sommai Phasee, former Minister of Finance

Populist policy and Sommai Tax :

“What I would like to encourage people to think about is that it seems that today political parties

Talk about spending money

But rarely does anyone talk about making money.

No one dares to touch it,

although each political party has an economic team that I think ... many people are good at it.

So it made me think

He might have to speak according to the party's guidelines, which maybe he (the economic team) might have in mind.

I just might not dare to say it out loud.” Former Minister of Finance

Start a conversation with "

Thairath Online Specialist Team"

“What political parties are trying to present to the people at this time.

In my personal opinion, I find it very disappointing.

That's why ... the various political parties.

Therefore try to talk only about small, trivial issues (populist policies) in hopes of gaining popular votes from the people

Which this story makes me reflect a lot, then what will the country get in this way?

Because in my personal opinion, I think

The main issues that various political parties

It should be presented to solve the real problem for the country at this time, namely

the elimination of corruption.

Creating better governance in the public sector

educational development

and decentralization to local

which, in turn, hardly any political party mentioned or raised as the main policy in presenting to the people at all

Which is enough like this, so I came to assume that

Maybe different political parties

May try to please the public too much

Until perhaps ignoring the bigger picture in terms of national development in order to lift most of the people out of poverty, it is possible

And if Thai politics continues like this

Our country would be difficult to move forward.

Therefore, the main thing that I would like to emphasize to the public to question political parties at this time is that

there are policies to play with fixing long-term income increases for the country, including tightening expenditures on various investment projects.

of the government or not?

Especially in the latter issue.

As far as I have personally heard

Huge amount of money has been leaked.

It is this that political parties should use as the main point of campaigning with the people.

Thai populist policy

How likely is it:

“In personal opinion

I think the populist policies of various political parties

It is unlikely that anyone can do as they say, or if they can do it, they can only do small things that don't cost a lot of money.

but with big things

that requires a lot of money

I don't think anyone can do it.

Because it may get stuck in the matter of law, including the fiscal sector itself, would not allow doing anything as you wish.

because it is linked to the country's fiscal and financial stability (emphasis on sound)

because it does not have to pay more as various political parties

Find your voice

Just take the same pay at present.

It is already in need of state expenditures.

because of the present

We have created public debt up to 70% of GDP and will it increase to 80% or 90% or how?

which is ok, you can add it, but the country will collapse (emphasis on sound), the baht will disappear

and what's going on, it's going to affect each other

In addition, the issue that I would like to invite people to think about is

populist policies

During the COVID-19 epidemic 3 years ago, it was not done because politicians were sympathetic to the poor people.

But because… it's a compulsory thing that needs to be done anyway.

Especially for grassroots people, the elderly or the disabled, in the past, there was very little assistance to these people. In addition, this assistance was in line with the economic theory of increasing internal consumption. country too

which when doing so ... then became attracted to the people's hearts

So it was used to campaign.


until now

makes some people feel numb

If going to travel somewhere

The government had to pay them to go (laughs), which now seems to be the case (laughs)

.

It's only compulsory.

It's not because the politicians feel sympathetic to the people at all.

In spite of creating a good quality of life

and raising the cost of living

Including the well-being of the people to be higher

This point is the key that the government must do.

Of course, doing that requires money.

And when using the money, they have to collect more taxes.

When the additional taxes were received, they were used to spend on these matters.

The money will be circulated like that.

And this is the turnover of the economy.

So it can't do just one side.

It has to be done on both sides to strike a balance.”

Loopholes in Thai-style populist policies:

“As for the important point that I would like to present is that if thinking about populist policies

The important thing that every political party must answer to the people is when the money has been spent.

How to earn more?

because nowadays we must not forget that

earning income for the country, especially the traditional taxation

Can't increase the income for the country much more

If thinking of doing populism or the welfare state

It has to be increased in both ways, namely spending money and earning enough to meet expenses.

which other countries do, such as Singapore or Japan, which gradually raise the VAT

But with Thailand, why is this matter so quiet?

which is considered very strange

For populist policies or the welfare state

In fact, there are many countries, especially Scandinavian countries.

What he has done repeatedly in some countries still gives more than other political parties.

Thailand is also trying to campaign at this time.

but that is different from Thailand

Those countries collect 15-20% VAT while Thailand is still at 7%. Think about the difference between their source of income and ours?

However, populist policies are not something to be feared but must be coupled with revenue-generating and restructuring of government revenues.

to create a good fiscal system

Including creating fiscal stability for foreign countries to see

to create opportunities to bring foreign investment to flow into the country.”

Thai economy and the proposal to increase the rate of VAT collection :

“The real Thai economy

I think we're still fortunate that our international reserves are strong.

In addition, the Bank of Thailand is also cautious about the risks of various financial institutions,

but when looking at the fiscal side

I could only see weakness (dragging voice) and getting more and more exhausted.

In particular, the issue of insufficient tax collection for expenditures, not very enough (emphasis added), and budget expenditures are also obscured by the increasing problem of corruption at all levels.

Because of this, the real money

that has reached the hands of the people, so it is not full

until our country

It can be called ... a country of lame ducks at this time.

which is very worrisome

And all right!

After the crisis of the COVID-19 epidemic, the government may be able to collect more revenue into the treasury.

But it's all because of businesses.

can start raising his head

Its income has to increase from the COVID-19 period.

which is considered normal

But if you analyze deeply, you will find that

There is no way to have enough budget...it doesn't have (emphasis added) a way to borrow more money.

It's always close to being filled.

Therefore, in my personal opinion

Therefore would like to propose to increase the rate of VAT collection.

Because the easiest tax to do is VAT.

which if we gradually

Gradual increase

It will help strengthen the country's financial and fiscal status.

Because okay!

In part, even though I have to admit that it may affect some people, especially the people of the grassroots.

But for this point, we can reduce the rules.

so that they can be affected as little as possible

Because the benefit of this point that our country will really get is that we must not forget that Thailand is a country that can grow with tourism.

Due to the large number of tourists traveling to the country each year

And these tourists... are the ones who pay us VAT every baht and every satang!

(accent)

Election 2016 with hopes for the Thai economy to recover:

“I still can't see a way...because from what I've heard.

Policies used in the campaigns of various political parties.

For the most part, it seems to be all the same. Moreover, there is no talk about solving the problem of corruption that has caused the country's governance system to deteriorate, even though it is the main problem in Thailand at this time.

How can it be hopeful like this?

And the only question I would like to ask all politicians is

Can you guys stop doing it for the sake of your friends?

then turned to do for the country, for the country of birth

Because at this time, everyone else was moving too fast.

Our part keeps going backwards.

So please turn to look at this point, please!

(Laughs)”

Mr. Sommai Phasee

ended the conversation with

the Thai Rath online news team.

Thai Rath online news team reports

1 trillion baht to drive the economy without incurring debt

The idea of ​​the UDD economic team.

Pay off debt, generate income, drive populism

Thai thinking creates Thai

create jobs, increase income

fit politics

Pheu Thai Economic Team

demolish the economic structure and fix expensive things

No populism, focus on sustainability

PPP economic team problem