Digital handout may violate charter, graft busters warn

Digital handout may violate charter, graft busters warn

According to NACC, there is no issue; only an economic slowdown and unjustified borrowing.

Digital handout may violate charter, graft busters warn
At Government House in November of last year, Prime Minister Srettha Thavisin tries to explain Pheu Thai’s 10,000 bass online budget plan. ( Image: Chanat Katanyu )

The government was forewarned by the National Anti-Corruption Commission on Wednesday that its 10,000 bass digital wallet flyer may be illegal under the constitution and other laws and result in a significant public debt burden.

Niwatchai Kasemmongkol&nbsp, the NACC secretary general, informed investigators that the commission’s decision was the result of extensive research and discussions with experts, scientists, and representatives of pertinent organizations.

It may lower the risk of breaking the law, the State Fiscal and Financial Disciplines Act, and the Currency Act and, most important, do not result in a long-term public debt problem, he said, “if its implementation is through the ordinary budget process, not based on loans raised through borrowing legislation.”

The coalition-core Pheu Thai Party’s online budget plan, according to Mr. Niwatchai, differs from the plan the government unveiled in parliament on September 11, 2023, during fighting for the May 14 general election.

” The Office of the Election Commission should determine whether this contravenes both the natural laws on social functions and the law… Normally, it will be precedent-breaking, he said, that political parties are exempt from having to implement their platform after winning office.

According to the NACC secretary-general, the 10, 000 baht flyer could be viewed as coverage problem if it turns out to gain specific political parties, politicians, people, and conglomerates, which is more likely than benefitting small businesses.

He added that although the authorities intended to use 500 billion baht to carry out the plan, its fiscal multiplier was only 0.4 ( the amount that people and organizations end up spending on other things as a result of purchasing one good or service ).

So, loans will result in a significant debt burden on both the government and the populace. The loan may be repaid over a period of four to five years, which will have an impact on government spending and purchase, according to Mr. Niwatchai.

When there is no financial crisis, the NACC recommended that the government provide financial aid to the poor in order to avoid negative economic effects.

According to the NACC investigation, the Bank of Thailand’s issue signals and data from World Bank and International Monetary Fund studies show that Thailand is experiencing an economic downturn rather than a crisis.

The government should concentrate on economic structure, encourage private consumption and saving and investment in the state industry, and develop employees ‘ skills, according to the NACC, in order to stimulate the economy with balance and sustainability.

Because the flyer would be one-off within a six-month period, the commission also questioned the viability of the government’s plan to use blockchain technology to utilize the online budget scheme.

Niwatchai Kasemmongkol, NACC secretary-general