Counsel sought on BAAC loan

Counsel sought on BAAC loan

Govt checks funding for online budget program

Counsel sought on BAAC loan
A kiosk operated by BAAC at a new version of Money Expo. Nutthawat Wicheanbut

The government has agreed to ask the Council of State, its legal arm, to interpret whether the Bank for Agriculture and Agricultural Cooperatives ( BAAC ) can legitimately allow the government to borrow 172. 3 billion ringgit to fund its online budget handout plan half.

The decision was reached at a gathering of the coalition parties on Tuesday. It was called for them to explain matters surrounding the anticipated execution of the decision Pheu Thai Party’s 500-billion-baht handbook plan.

” All concerns, including the matter of the [questionable ] authority and responsibility of the BAAC, will have to be forwarded to the Council of State. That’s what all the alliance parties have just agreed on,” Prime Minister Srettha Thavisin said briefly.

Nevertheless, he stopped short of elaborating on this growth and refused to answer queries from Government House writers, simply saying Deputy Finance Minister Julapun Amornvivat had more information and should be quizzed on the subject.

Mr Julapun took over and answered why the specific time for the release still has not been fixed, saying the government needs to wait until it knows exactly when the working method for the program will be set first.

” This part of the work is very important as it deals with the efficiency and security of software and person’s personal information as well as sensitive information managed by state companies,” Mr Julapun said.

The state is convinced it will still be able to follow the announced period for registering qualified individuals in the second quarter of this year and giving out the online money afterwards in Q4, he noted.

All people aged 16 and older who earn no more than 70,000 baht a month are eligible to receive 10,000 baht in electronic money intended for spending at local shops, in a local economic stimulus measure the government believes may yield a substantial financial return.

But Mr Julapun admitted that the government has yet to seek approval from the BAAC board on the plan to borrow 172. 3 billion baht from the bank, saying the government would do so later, possibly in October.

The digital wallet scheme will be financed by three sources of funding– 152. 7 billion baht from the budget for the 2025 fiscal year; 175 billion baht from the reallocation of the budget for the current fiscal year; and 172. 3 billion baht to be borrowed from the BAAC.

” There are still four to five months left for the government to assure all sides about the legality of its planned implementation of the digital wallet scheme by consulting with the Council of State on any doubts raised about it,” said Mr Julapun.

While waiting for the council to rule, the government will be working on the parts of the scheme that can be dealt with now, he said.

Asked if the BAAC could see a liquidity crisis if it lends so much money, Mr Julapun said the bank has sufficient liquidity and will continue to do so.

Responding to concerns from the bank’s labour union over the potential impact on the bank’s financial security, Mr Julapun said he could assure all staff that their work benefits would not be affected.

” The BAAC is financially secure. Do n’t forget that all shares of the bank are held by the government,” he said, adding measures will be sought to ensure it maintains sufficient liquidity.

The digital wallet scheme is expected to help the economy gather momentum and thrive for at least three or four years, said government spokesman Chai Wacharonke.

Thailand’s economy is projected to grow by an extra 1. 2 % to 1. 8 % due to the scheme, as the digital money will multiply by 3. 2 to 3. 5 times, said Mr Chai.