Thailand’s State Council Raises Objections To Government’s Digital Wallet Funding Plan

8-1-2024 (BANGKOK) The Office of the State Council in Thailand, responsible for providing legal advice to governments and state agencies, has voiced its concerns regarding the government’s proposed legislation to fund the digital wallet scheme.

According to a report from “The Nation” on Sunday (January 7), an anonymous source within the State Council emphasized that if there is an urgent need to stimulate the economy, the government should resort to issuing an executive order rather than a bill to borrow funds. The source argued that the lengthy implementation process associated with a bill indicates that the economic situation is not as dire as claimed.

The digital wallet project was a campaign promise made by the Pheu Thai Party, to which the government belongs. Under this plan, approximately 50 million citizens over the age of 16 would receive a one-time payment of 10,000 baht (approximately S$378) from the government, with distribution expected to commence as early as May. However, around 6 million high-income individuals would be excluded from this initiative. The Thai government intends to submit a bill to parliament early next year, seeking approval for a loan of 500 billion baht to fund the implementation of the digital wallet scheme.

Sources within the State Council argue that it is contradictory to enact a bill to borrow such a large sum of money, particularly in response to an economic emergency as claimed by the government. Furthermore, they contend that borrowing 500 billion baht to finance the digital wallet project may potentially violate Article 140 of the constitution. The Council of State has highlighted that Article 140 mandates the government to offset any loan amount sought outside the budget bill by allocating funds in the subsequent budget bill.

According to the State Council, it would be practically impossible for the government to allocate up to 500 billion baht in the fiscal year 2025 budget bill to offset the loans required for the digital wallet initiative.