State funding for the digital budget plan is checked.
The government has consented to ask the Council of State, its legal arm, to interpret the question of whether the Bank for Agriculture and Agricultural Cooperatives ( BAAC ) can legitimately permit the government to borrow 172.3 billion baht to partially finance its digital wallet handout scheme.
The partnership events ‘ Tuesday meeting on Tuesday resolved the issue. They were asked to discuss issues relating to the anticipated execution of the decision Pheu Thai Party’s 500 billion ringgit handbook scheme.
” All concerns, including the matter of the]questionable ] authority and responsibility of the BAAC, will have to be forwarded to the Council of State. All the partnership events have really come to an agreement on that, according to Srettha Thavisin, the prime minister.
He simply stated that Deputy Finance Minister Julapun Amornvivat had more information and should be quizzed on the subject and that he had stopped short of elaborating on this growth and refused to respond to queries from Government House writers.
Mr. Julapun took over and explained why the launch date has n’t been set, arguing that the government needs to wait until it knows when the scheme’s operating system will be ready first.
This area of the work is crucial because it concerns the safety and reliability of applications, users ‘ personal data, and sensitive data handled by government agencies, according to Mr. Julapun.
He noted that the government is convinced that it will still be able to pass the timeframe set for the third quarter of this year’s registration period and the release of digital money afterwards in Q4.
In a local economic stimulus determine that the government believes will produce a higher socioeconomic return, all people aged 16 and older who make no more than 70, 000 baht per month are eligible to receive 10, 000 baht in online money to spend at neighborhood shops.
However, Mr. Julapun acknowledged that the government has not yet received BAAC board approval for its plan to borrow 172.3 billion baht, stating that it will do so in due course, perhaps in October.
The funds for the 2025 fiscal year will be funded by 152.7 billion baht, 175 billion ringgit from the funds redistribution for the current fiscal year, and 172.3 billion ringgit from the BAAC.
According to Mr. Julapun, there are still four to five months left for the government to make sure all sides are informed about the propriety of its prepared application of the digital wallet plan by consulting with the Council of State regarding any concerns that may be raised.
The government may be working on the elements of the program that can be dealt with then, he said, while waiting for the government to act.
When asked if the BAAC might experience a liquidity crisis if it lent such a large amount of money, Mr. Julapun said the bank has sufficient liquidity and will continue to do so.
Mr. Julapun expressed concern from the bank’s labor union over the potential impact on the bank’s financial security by saying he could assure all staff that their work benefits would not be impacted.
” 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.
According to government spokesman Chai Wacharonke, the digital wallet initiative is anticipated to spur economic growth and growth for at least three or four years.
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.