Thai Government Contemplates Loan for Digital Wallet Program

[webfact]

 

The Thai government is contemplating borrowing 172.3 billion baht from the Bank for Agriculture and Agricultural Cooperatives (BAAC) to partly finance its digital wallet initiative. This move came after discussions at a coalition party meeting, where the Pheu Thai Party's proposed 500-billion-baht scheme was reviewed.

 

Prime Minister Srettha Thavisin confirmed the decision, stating that consultations with the Council of State would address concerns regarding BAAC's authority. However, he redirected inquiries to Deputy Finance Minister Julapun Amornvivat.

 

Julapun, addressing questions about the launch date, highlighted the necessity of ensuring the readiness and security of the scheme's operating system. Despite this, he expressed confidence in meeting the registration and disbursement timeline.

 

The program aims to assist individuals aged 16 and above earning less than 70,000 baht monthly by providing 10,000 baht in digital currency for local purchases, with expectations of stimulating economic activity.

 

Julapun noted the pending approval from the BAAC board for the loan, projected for October. The funding for the digital wallet initiative includes allocations from the 2025 fiscal year budget, reallocation from the current fiscal year's budget, and the proposed loan.

 

In addressing concerns about BAAC's liquidity and staff benefits, Julapun assured sufficient liquidity and unaffected staff benefits, considering the government's ownership and strategic measures.

 

Government spokesman Chai Wacharonke anticipates the scheme to boost the economy for several years, projecting an additional 1.2% to 1.8% growth due to the multiplier effect of digital money, reported The Thaiger.

 

Top Picture courtesy of Sanook

 

-- ASEAN NOW 2024-04-24

 

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[proton]

Easy to offer bribes for votes, not so easy to fund them. They did not even win!

[jonclark]

I would love to know the interest rate on a 172 billion baht loan and the total repayable over the loan's lifetime.

 

If the government can get a loan of 172 billion interest-free, I would gladly give the entire cabinet a <deleted>. 

[jonclark]

Also if anyone who is literate on this can explain how "digital money creates a multiplier effect" I would love to hear that explaination

[Pouatchee]

two words i hope become a prophecy fulfilled

 

nail -- coffin

[DPKANKAN]

1 hour ago, jonclark said:

I would love to know the interest rate on a 172 billion baht loan and the total repayable over the loan's lifetime.

 

If the government can get a loan of 172 billion interest-free, I would gladly give the entire cabinet a <deleted>. 

Why don't they use all those millions being wasted on the 'New Senate' election vote just announced???? Kill 2 birds with 1 stone!!!!5555😏😏😏😏😂🤣😂🤣

 

 

 

[hotchilli]

3 hours ago, webfact said:

by providing 10,000 baht in digital currency for local purchases, with expectations of stimulating economic activity.

Vote bribe pure and simple.

[Srikcir]

2 hours ago, jonclark said:

Also if anyone who is literate on this can explain how "digital money creates a multiplier effect" I would love to hear that explaination

Digital money is spent by those who otherwise cannot to make purchases, thus increasing consumer spending, a GDP Sector.

[Srikcir]

2 hours ago, jonclark said:

 

 

Edited April 24 by Srikcir
Double post

[Srikcir]

Thavisin needs a loan for his digital wallet scheme while planning to build the world's tallest building the Burj Khalifa at 821m high, costing US$1.5 billion.

Seems like questionable priorities. 

Maybe use building funds for free higher education or work skills that helps the Thai citizens be self sustaining.

[jonclark]

26 minutes ago, Srikcir said:

Digital money is spent by those who otherwise cannot to make purchases, thus increasing consumer spending, a GDP Sector.

Okay - so no new debt is created right?

Shouldn't all governments be following Thailand's example then to improve GDP by giving away money at every election? If increasing consumer spending through monetary gift creates a boost to GDP. I am surprised other governments don't regularly follow this model to strengthen their country's ecomony? 

 

[PETERTHEEATER]

Loans should have been secured before the current government announced it would be implemented in Quarter 3. Now the backpedalling......

[spidermike007]

Well for some reason they appointed Srettha as Finance Minister in addition to PM. He's now revealing his level of absolute genius. Always a visionary move to stimulate the economy with more debt. 

[BangkokReady]

8 hours ago, jonclark said:

Okay - so no new debt is created right?

Shouldn't all governments be following Thailand's example then to improve GDP by giving away money at every election? If increasing consumer spending through monetary gift creates a boost to GDP. I am surprised other governments don't regularly follow this model to strengthen their country's ecomony? 

 

While the idea is sound, the problem is that a lot of people don't spend their money, but rather save it.  It's like "trickle-down economics", the idea is that the more money business people have, the more they will spend on employing people (hence we should give them tax-breaks).  The problem is that when business people make more money, rather than growing their business and passing that money onto their employees, they hoard it.

[Purdey]

Wonder what would happen if interest rates rose just after the government borrowed the money?

[john donson]

only people that actually PAY TAXES should get it... as a tax rebate... but that would be a hard sell before the elections...