Thailand’s Digital Wallet Crisis: MFP Opposes Budget Allocation

[webfact]

 

Thailand's Move Forward Party (MFP) has robustly opposed the government's supplementary budget bill, spotlighting the controversial digital wallet scheme.

 

The scheme, pegged at an astronomical 450 billion baht, aims to inject 10,000 baht into the wallets of eligible citizens. However, it has faced severe criticism for its dubious effectiveness in stimulating economic growth and its potential to breach legal and fiscal policy principles.

 

MFP Deputy Leader Sirikanya Tansakul led the charge, urging coalition parties to turn down the Pheu Thai Party's flagship initiative. She forewarned that endorsing the scheme might entail legal implications and expose Thailand to significant financial risks.

 

The issue dominated discussions in the Lower House, where representatives deliberated over the government's mid-year budget bill. This bill seeks an extra 122 billion baht to cover funding gaps following the decision not to borrow from the Bank of Agriculture and Agricultural Cooperatives (BAAC).

 

As the launch date for the digital wallet registration looms, barely 15 days away, Sirikanya underscored the ambiguity around the executing ministry or agency. Despite two companies securing contracts to develop the system, the disbursement details of the 10,000 baht to Thai citizens remain unclear.

 

Sirikanya argued that the scheme could favour major retailers with strong financial reserves, disadvantaging smaller shops struggling with liquidity issues. The downscaled budget, assuming a 90% registration rate among eligible participants, was dismissed as a face-saving measure to fulfil election pledges.

 

With GDP growth forecasts downgraded from 2.7% to 2.5%, Sirikanya slammed the government for not revising its revenue projections. She highlighted a 26 billion baht shortfall in revenue over the last eight months, questioning the reliability of the government's revenue forecast.

 

Sirikanya also pointed out that the underutilised 100 billion baht Central Fund should have been used to mitigate the financial woes stemming from high electricity and oil prices or to assist those affected by environmental disasters like flooding and drought.

 

She accused the government of reserving the Central Fund for the digital wallet scheme instead of urgently needed support measures. Additionally, she criticised the government's intent to roll over 2024 fiscal year funds into the next year, deeming it a breach of fiscal discipline principles.

 

This brewing financial storm underlines the growing tension and the need for more transparent and effective fiscal management to steer Thailand's economy towards stability.

 

Picture courtesy: Thai PBS

 

-- 2024-07-18

 

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[it is what it is]

 

brewery, p*ss up, organise, couldn't.

[hotchilli]

Promises made to get votes that the government cannot afford.

[ikke1959]

This 10k scheme will be more harm than they know or say.. The burden of years of interest and payback for the loan will cost dearly... And that for an handout that will benefit who?? The real poor?? kids from 16 year old??? people with income of 70k a month don't really need it or who has 500k on bankaccounts.... Money on bankaccounts are holding the economy back too.... But a single handout will never work.. Use the money to raise the diaily salaries for instead.. so that the poor people can spend more Everything is getting  more expensive everyday and people can not buy more with not even 400 THB a day

[john donson]

playing santa claus with borrowed money to people who probably never filed a tax return in their lives, because they can...

 

why not 1000 baht 'vote buying' tip as usual ?

[redwood1]

Retired expats should all be getting 10,000 baht PER MONTH as Thailands way of saying Thank You for being here...

[Gsxrnz]

I've never heard of any other government giving out free money to attain or preserve their position of power - Oh wait! 

[Tropicalevo]

1 hour ago, ikke1959 said:

Use the money to raise the diaily salaries for instead

So that more businesses go bust and more unemployed?

[klauskunkel]

5 hours ago, webfact said:

This brewing financial storm underlines the growing tension and the need for more transparent...

This brewing financial storm underlines the absurdity of childish minds playing at politics without supervision.

[scorecard]

2 hours ago, hotchilli said:

Promises made to get votes that the government cannot afford.

Promises made by people who in the past had the power to ignore internationally accepted rules, regulations, ethics and controls in regard to spending of taxpayers funds.

 

Now the wheel has turned and the same folks are lost and can't find a law to circumvent (break) the law. 

 

This money if the property of all Thai citizens and must be handled with full respectand ethics and MFP is taking the correct stand to strongly object.

[ikke1959]

1 hour ago, Tropicalevo said:

So that more businesses go bust and more unemployed?

Which business will go bankrupt as people buy more??? It is that fear that is being used not to raise salaries

[Purdey]

I doubt anyone can follow who will receive the money and a few million will go to people who died in the last 6 months. I also doubt the government's records are up to date.

Politicians will pocket a portion and this will not help poor people.

 

[scorecard]

1 hour ago, Purdey said:

I doubt anyone can follow who will receive the money and a few million will go to people who died in the last 6 months. I also doubt the government's records are up to date.

Politicians will pocket a portion and this will not help poor people.

 

I have little doubt that local politicians will share some benefit from this scheme.

 

Just look at the party behind the scheme. They wouldn't have suggested the scheme if there was no built in benefit for them.

[brianthainess]

7 hours ago, it is what it is said:

 

brewery, p*ss up, organise, couldn't.

They couldn't organize a children's party in a lemonade factory ,that is next door to a cake factory. 

[brianthainess]

3 hours ago, redwood1 said:

Retired expats should all be getting 10,000 baht PER MONTH as Thailands way of saying Thank You for being here...

Some Married Ex-pats wife's will get it, mine will but I bet I don't get 50%... 

 

[brianthainess]

4 hours ago, ikke1959 said:

people with income of 70k a month don't really need it or who has 500k on bankaccounts.

Agree that's around 2,333 baht a day, most bar girls earn way more than that, and pay no Tax, do those registering have to say what job they have and proof of wages ?