The government of Thailand is taking steps to verify the legality of its plan to borrow 172.3 billion baht from the Bank of Agriculture and Agricultural Cooperative (BAAC) to partially finance its 500-billion-baht digital wallet handout scheme. Prime Minister Srettha Thavisin announced that the government will seek advice from the Council of State, the state’s legal arm, to ensure that the scheme proceeds in compliance with the law.
The scheme, which aims to boost the economy, involves distributing 10,000 baht to every eligible individual through a super app created by the Digital Economy and Society Ministry. The funds can be used through any bank in an open-loop model. The government is committed to carrying out the scheme transparently and is open to public scrutiny, emphasizing its intention to foster accountability.
While the government has outlined a funding plan, critics have expressed concerns about borrowing from the BAAC, citing similarities to previous loss-ridden schemes. Jurin Laksanawisit, a Democrat Party list MP, drew parallels to the controversial rice-pledging program under the Yingluck Shinawatra administration, cautioning against accumulating more debt. Nipon Poapongsakorn, a distinguished fellow at the Thailand Development Research Institute, echoed these sentiments, urging the government to provide specific details about loan repayment.
As the government moves forward with its ambitious digital wallet handout scheme, legal verification of its funding plan will play a significant role in ensuring its adherence to regulations. The scheme’s success will depend on effective implementation, transparent distribution of funds, and a clear vision for repayment and accountability.
The digital wallet handout scheme in Thailand is part of the government’s efforts to boost the economy. By distributing 10,000 baht to eligible individuals through a super app, it aims to provide financial support and stimulate spending. However, the funding plan for this scheme has raised concerns and prompted the government to seek legal advice.
One of the main issues is the government’s plan to borrow 172.3 billion baht from the Bank of Agriculture and Agricultural Cooperative (BAAC) to partially finance the scheme. Critics have raised questions about the sustainability of borrowing from the BAAC, citing previous loss-ridden schemes such as the controversial rice-pledging program under the Yingluck Shinawatra administration. These concerns highlight the importance of ensuring the scheme proceeds in compliance with the law and addressing specific details about loan repayment.
In order to address these concerns and ensure transparency, the Thai government is seeking advice from the Council of State, the state’s legal arm. This step is crucial in verifying the legality of the funding plan and addressing any potential issues. The government has emphasized its commitment to carrying out the scheme transparently and has expressed its openness to public scrutiny. This demonstrates its intention to foster accountability and gain public trust.
The success of the digital wallet handout scheme will depend on effective implementation and the transparent distribution of funds. It is essential for the government to establish a clear vision for repayment and accountability, addressing concerns raised by critics and experts alike. This will help ensure that the scheme achieves its intended goals of stimulating the economy and providing financial support to individuals.
Related Links:
Digital Banking Report
Bangkok Bank