BANGKOK: Thai Prime Minister Paetongtarn Shinawatra on Thursday outlined her government’s policy agenda to parliament, headlined by plans to give away 450 billion baht ($13.4 billion) in handouts to jumpstart Southeast Asia’s second-largest economy.
Political newcomer Paetongtarn’s cabinet was sworn in this month, after parliament elected her Thailand’s youngest premier following the shock removal of predecessor Srettha Thavisin by a court decision.
The polices largely continue ally Srettha’s agenda and that of their populist Pheu Thai party, including debt restructuring and legalizing casinos to draw in investment and more tourists.
Paetongtarn told parliament her government was facing challenges, including structural economic problems, and said the government would act with urgency to stimulate growth.
“If there are no financial and fiscal measures to support economic growth, it is expected that the country’s economic growth rate will not exceed 3 percent per year,” she said.
That would result in the public debt level approaching the ceiling of 70 percent to gross domestic product (GDP) in 2027, she said. Public debt stood at 63.74 percent of GDP at the end of July.
“Therefore, it is a great challenge that the government must urgently restore the country’s economy to quickly grow strongly again,” Paetongtarn said.
While she highlighted the signature plan for a ‘digital wallet’ handout of 10,000 baht ($300) to 50 million people, some of which Paetongtarn has previously said will be given in cash, there were no updates on how or when it would be rolled out.
The government had said this week it would distribute 145 billion baht ($4.2 billion) of the program to support vulnerable groups later this month.
The scheme has been criticized by economists and former central bank governors as fiscally irresponsible, which the government rejects. It has struggled to find sources of funding.
The government insists the policy is necessary to energize the economy, which the central bank expects to grow 2.6 percent this year, up from 1.9 percent in 2023 but far adrift of most regional peers.
Consumer confidence dropped for a sixth straight month to a 13-month low in August, a survey showed on Thursday.
Paetongtarn, 38, made her debut appearance in parliament as Thailand’s second female prime minister. She is the fourth member of her family to hold the top job.
Among those was her father, the billionaire Thaksin Shinawatra, Thailand’s most influential and divisive politician over the past two decades, who has backed the stimulus plan and is a key figure behind her Pheu Thai party.
Thailand’s new PM outlines policies to parliament as consumer mood drops
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Thailand’s new PM outlines policies to parliament as consumer mood drops
- Prime Minister Paetongtarn Shinawatra highlights signature plan for a ‘digital wallet’ handout of 10,000 baht to 50 million people
- The scheme has been criticized by economists and former central bank governors as fiscally irresponsible, which the government rejects
US will respond to Rwanda’s violation of peace pact, says Rubio
- Waltz told the Security Council meeting that the US “is deeply concerned and increasingly disappointed” by this resurgence of violence
WASHINGTON: Top US diplomat Marco Rubio said on Saturday that Rwanda had clearly violated the peace agreement it signed with the Democratic Republic of Congo in Washington last week and vowed unspecified “action” in response.
The Rwandan-backed M23 armed group advanced in eastern DRC and seized the key border city of Uvira, just days after the leaders signed the “Washington Accords” on Dec. 4.
“Rwanda’s actions in eastern DRC are a clear violation of the Washington Accords, and the US will take action to ensure promises made to the President are kept,” Secretary of State Rubio wrote on X.
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UN peacekeeping chief Jean-Pierre Lacroix warned the new offensive ‘has revived the specter of a regional conflagration with incalculable consequences.’
The capture of Uvira, along the border with Burundi, has raised fears that the conflict could escalate into a regional war.
As part of an offensive launched at the beginning of December in South Kivu province, the armed group’s takeover follows its earlier this year capture of Goma and Bukavu, other major cities in the DRC’s mineral-rich east.
On Friday, US Ambassador to the UN Mike Waltz accused Rwanda of “leading the region toward more instability and toward war.”
“The Rwandan defense forces have provided materiel, logistics, and training support to M23 as well as fighting alongside M23 in DRC with roughly 5,000 to 7,000 troops,” not including possible reinforcements during the latest offensive, Waltz told the UN Security Council.
The Rwandan firepower has included surface-to-air missiles, drones, and artillery, he added.
Since taking up arms again in 2021, the M23 has seized swaths of territory, displacing tens of thousands and leading to a spiraling humanitarian crisis.
Earlier this month, UN experts said Rwanda’s army and the M23 had carried out summary executions and forced mass displacements of people in the region.
Waltz told the Security Council meeting that the US “is deeply concerned and increasingly disappointed” by this resurgence of violence.
The envoy denounced “the scale and sophistication” of Rwanda’s involvement in eastern DRC.
UN peacekeeping chief Jean-Pierre Lacroix warned the new offensive “has revived the specter of a regional conflagration with incalculable consequences.”
“Recent developments pose a serious risk of the progressive fragmentation of the Democratic Republic of Congo, particularly its eastern part,” he said.
Burundi on Friday accused Rwanda of bombing its territory, and its ambassador, Zephyrin Maniratanga, told the council it “reserves the right to use self-defense.”
He warned that if the attacks continue, it would be extremely difficult to avoid an escalation between the two African countries.
“Rwanda is not waging war against the Republic of Burundi and has no intention of doing that,” Ambassador Martin Ngoga said.
Meanwhile, Congolese Foreign Minister Therese Kayikwamba Wagner criticized the Security Council for its “lack of action” and called for sanctions against Rwanda.
Despite a resolution adopted in February demanding the withdrawal of Rwandan troops and a ceasefire, “the situation is undeniable: another city has fallen, a parallel administration has consolidated itself, thousands more families have fled, and others have been killed, raped, and terrorized,” she said.
