Increasing income through policy measures is crucial in addressing the burden of high household debt. By implementing effective policies, such as promoting job growth and raising wages, individuals can better manage their debts and achieve financial stability.
Economic experts in Thailand are criticizing the income increase policies of the outgoing administration and the proposals of parties vying to form the next government. One such policy, the income guarantee scheme for farmers, is costing the government over 100 billion baht ($3.3 billion) annually, and experts argue that it lacks conditions to improve productivity and reskill farmers. The Democratic Party, which could be part of the new ruling coalition, vows to continue this scheme. Experts also disagree with the debt moratorium proposals of the Pheu Thai and Bhumjaithai parties, warning of potential moral hazards. Household debt in Thailand remains high at 90.6% of GDP. Experts believe that increasing productivity and implementing financial discipline are key to reducing debt and increasing income sustainably.
