Government finds itself backed into a corner on digital wallet scheme

[webfact]

 

The Thai government’s controversial plan to raise 500 billion baht through an off-budget loan for the digital wallet scheme has run into another roadblock.

 

The National Anti-Corruption Commission (NACC) recently issued a warning that the scheme risked violating the Constitution and related laws and was vulnerable to corruption.

 

In January, the Council of State — the government’s legal advisory body — had also suggested thorough consultation with related agencies, and asked that the State Fiscal and Financial Disciplines Act be followed before proposing a loan bill to Parliament.

 

A hot potato

 

In the run-up to the May general election last year, the Pheu Thai Party had pledged to implement the digital wallet scheme under which everyone aged 16 years and above would be given a one-time 10,000 baht handout for spending in a prescribed radius within six months.

 

The estimated cost of the scheme was around 560 billion baht.

 

Pheu Thai, which leads the current ruling coalition had argued then that the scheme was aimed at boosting the country’s faltering economic growth to at least 5 per cent. Economic growth in recent years has been stuck in a rut of 2-3 per cent.

 

Full story: Thai PBS 2024-02-12

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

 

[Gknrd]

And, "Joke of the Day!

[ChaiyaTH]

This just becomes so tiring and repeating... clearly they really have few brains here. It's a bit like the stuff I deal with at home, you talk about it for dozens of times and then they still do it their own (not working) way each time, to ask for help when it goes wrong, to then still do the same again after having received advice.

[worgeordie]

36 minutes ago, webfact said:

The Thai government’s controversial plan to raise 500 billion baht through an off-budget loan

"The estimated cost of the scheme was around 560 billion baht."so it's going to cost 60 Billion Baht

to run the thing , seems like a lot of corruption just there.

 

regards Worgeordie

[smedly]

pay up or hold an election

 

the courts should disolve all the parties for election fraud

[bokningar]

43 minutes ago, smedly said:

pay up or hold an election

 

the courts should disolve all the parties for election fraud

Does that happen in your home country?

Politicians first priority, get elected.

Second priority get reelected.

Nothing ells mater to them.

[BigStar]

1 hour ago, worgeordie said:

"The estimated cost of the scheme was around 560 billion baht."so it's going to cost 60 Billion Baht

to run the thing , seems like a lot of corruption just there.

 

regards Worgeordie

 

Agreed. This is obviously a scheme, and vote buying. The gov't will pay back the loan with baht cheapened by inflation, while borrowing more in the meantime. Hope the BOT stands firm, at least.

[stoner]

1 hour ago, ChaiyaTH said:

This just becomes so tiring and repeating... clearly they really have few brains here. It's a bit like the stuff I deal with at home, you talk about it for dozens of times and then they still do it their own (not working) way each time, to ask for help when it goes wrong, to then still do the same again after having received advice.

 

how do you know my wife so well ? spooky.

[BritScot]

It should have been means tested and not a blanket 10,000baht for everyone. A welfare payment, but I suppose the same people would still be screaming about it. Heaven forbid the poor get any help.... Hold your heads in shame!!!

[ukrules]

4 hours ago, smedly said:

pay up or hold an election

 

Can't the parties just make a new coalition and form a new government.

 

If all the coalition partners support this scheme (and I don't belive they do) then they continue as they are.

 

The clocks ticking on this delicate coalition. What is it - 9 separate parties - it was doomed from the outset in my opinion - too many different parties.

 

[jaywalker2]

I thought the whole purpose was corruption

[TooPoopedToPop]

7 hours ago, BigStar said:

 

Agreed. This is obviously a scheme, and vote buying. The gov't will pay back the loan with baht cheapened by inflation, while borrowing more in the meantime. Hope the BOT stands firm, at least.

Vote buying it is and it has Thaksin's dirty fingerprints all over it.

[hotchilli]

17 hours ago, webfact said:

The Thai government’s controversial plan to raise 500 billion baht through an off-budget loan for the digital wallet scheme has run into another roadblock.

Should have thought this all through before making the vote buying pledge.

Now in office they cannot afford to raise the money to fulfill their promise.

[hotchilli]

17 hours ago, webfact said:

Pheu Thai, which leads the current ruling coalition had argued then that the scheme was aimed at boosting the country’s faltering economic growth to at least 5 per cent. Economic growth in recent years has been stuck in a rut of 2-3 per cent.

It was a vote buying scam, pure and simple.

[TheAppletons]

16 hours ago, worgeordie said:

"The estimated cost of the scheme was around 560 billion baht."so it's going to cost 60 Billion Baht

to run the thing , seems like a lot of corruption just there.

 

regards Worgeordie

 

  From the article:

 

  "In November, the government revised the eligibility criteria and excluded those having monthly income of 70,000 baht and above, as well as those having bank deposits of 500,000 baht and above.

 

This reduced the number of people eligible for the handouts to 50 million from 54 million, lowering the estimated cost to around 500 billion baht from 560 billion baht."

 

So no, it's not designed to cost 60 billion THB to "run the thing".  

[jacko45k]

Let's just make it a 5kg bag of rice for everyone and end it at that!

[Presnock]

16 hours ago, bokningar said:

Does that happen in your home country?

Politicians first priority, get elected.

Second priority get reelected.

Nothing ells mater to them.

You got most of it correct...you forgot get rich through corruption..US Congress for sure.

[The Old Bull]

Where I live nothing within 4 kms only a couple of mom and pop shops not tech savvy. I can see some sharp young guy setting up a shell company with a QR code and buying credits for cash at a heavily discounted rate. This will get ugly when the Thai mafia get involved and these sites  pop up all over. Thais like quick cash I can't see anyone spreading benefits over six months if they can get instant cash even at a discounted rate,so city businesses will be buying up credits rather than delivering goods. The whole thing is unworkable.

[mfd101]

Conclusion: Ain't gonna happen. Move on.

[Purdey]

Not sure how the government can set a limit on monthly income as so few people pay tax. A lot of people are not declaring their earnings. 

[Srikcir]

"Government finds itself backed into a corner on digital wallet scheme" is a viable position than backed "against the wall" (my bold)

Analysis of the issues is more defined for the former having four dimensions and less defined for the latter having only two (or less) dimensions. 

The government should embrace the corner, engage the problems, collect the applicable economic data and determine the necessary legislative goals to deliver in an equitable, fair and accountable manner.

[PETERTHEEATER]

Just accept it's an iconic soft power scheme and await the outcome....😋

[stoner]

10 hours ago, jacko45k said:

Let's just make it a 5kg bag of rice for everyone and end it at that!

 

yingluck could head the committee.