Somkid pushes for more fiscal, monetary measures to boost economic growth
Deputy Prime Minister Somkid Jatusripitak said Thailand still has a lot of room to grow, but it will need to deploy more economic instruments, especially through monetary and fiscal policies.
The government has issued many fiscal measures to stimulate the economy. However, according to the Financial Act and Government Procurement and Supplies Management Act, the government might struggle to issue more economic measures due to limits under the law, he said. The current economy needs more fiscal measures to push for growth, he said, adding: The Bank of Thailand [BOT] and the Finance Ministry must work in unison for a better economy.
Monetary policy plays a crucial role amid the economic situation, as it impacts both money stock and the currency exchange rate. The current strong baht affects the export sector and agricultural product prices, as exports rise but result in lower revenue, which affects domestic purchasing power and value-added tax collection.
“The BOT is the main organisation controlling monetary policy, in which the government cannot interfere. But I do believe the BOT has more monetary instruments to manage the baht’s appreciation other than adjusting the interest rate. The amount of money in the system needs to be stable and appropriate, not more or less,” said Somkid.
The deputy premier also encouraged the private sector to invest at home. “The BOT wants to drain excessive dollars through investments abroad, which will help weaken the baht. However, the private sector also needs to invest in the internal market to strengthen confidence in the economy.”
