Prime Minister to announce plan for digital wallet loan this week
Prime Minister and Finance Minister Srettha Thavisin announced yesterday (January 7) that the Council of State had given its opinion on the government's plan to borrow 500 billion baht to distribute digital wallets to citizens.
The opinion is in line with the government's proposal, and there are no legal obstacles to the plan, though this should not be done through legislation of a bill.
The Prime Minister said he will hold a press conference to announce the details of the plan in the next two days. He will also discuss the plan with the Council of State to get their feedback on the implementation process.
The plan to distribute digital wallets has been controversial, with some critics arguing that it is not effective and will not stimulate the Thai economy significantly as intended. However, the government has defended the plan, saying that it is necessary to help people who are struggling financially.
A government source revealed that the key issue raised by the Council of State concerns the legislation regarding additional borrowing from the annual government budget, which can only be done in cases of crisis, emergencies, and urgent necessities that cannot be avoided, as stipulated by Article 53 of the State Finance and Fiscal Discipline Act of 2018. This article specifies that using funds beyond the normal budget or government borrowing is permissible only in situations of crisis and urgent necessity.
A senior source from Government House said the government is preparing to find a solution by proposing to issue government bonds to raise funds to support the government's digital wallet scheme.
