8-1-2024 (BANGKOK) The government’s ambitious scheme to finance a 500 billion baht cash handout through special borrowing legislation has received approval from its legal advisor, marking a significant milestone for Prime Minister Srettha Thavisin’s contentious stimulus programme.
Deputy Finance Minister Julapun Amornvivat revealed on Monday that the Council of State has sanctioned the government’s authority to enact the borrowing bill for the cash stimulus initiative. The Council, responsible for providing legal counsel to the administration, emphasized that the legislation must align with an economic crisis that necessitates such measures.
The Council’s endorsement paves the way for Prime Minister Srettha’s administration to proceed with the plan to distribute 10,000 baht to approximately 50 million Thai individuals aged 16 and above, starting in May. The goal is to invigorate growth in Southeast Asia’s second-largest economy through the digital wallet initiative.
However, the digital wallet plan may encounter legal challenges from critics opposing the handout. The decision to borrow funds for the programme has triggered backlash, including objections from opposition parties, former central bankers, and economists who express concerns that it could widen the fiscal deficit and fuel inflation.
Prime Minister Srettha aims to boost Thailand’s annual growth, which has trailed behind neighbouring countries, averaging below 2% over the past decade. His vision is to elevate growth to 5% during his term. Last week, the House of Representatives passed the first reading of Srettha’s 3.48 trillion baht budget plan for the fiscal year ending on September 30.
A committee assigned to oversee the cash handout programme is set to convene soon to discuss the draft bill and strategize the timeline for cash distribution, according to Julapun.
