By Thai Newsroom Reporters
LEGISLATION FOR the Pheu Thai-led government to acquire a sum of 122 billion baht in supplementary budget to partly finance the 450 billion baht digital wallet project today (July 17) smoothly sailed through the approval-in-principle stage in the House of Representatives.
After a 10-hour floor debate on the highly contentious legislation, 297 Pheu Thai-led government MPs voted in support of it whilst 164 Move Forward-led opposition MPs voted in vain against the bill which, they said, was virtually a “face-saving” act at the expense of the country’s economic potential.
Prime Minister Srettha Thavisin reconfirmed the 122 billion baht supplementary budget will be part of the Central Fund, totaling 165 billion baht for the current fiscal year, to finance the 10,000-baht digital wallet project in addition to a total of 285 billion baht in earmarked funding including a 152 billion baht batch from the Central Fund for the next fiscal year.
The prime minister repeatedly pledged to see to it that the Pheu Thai-initiated populist handout campaign will be implemented as of the fourth quarter of this year in cost-effective, transparent and examinable fashion.
Srettha branded the Pheu Thai flagship campaign as an “economic tornado” which, he said, will overwhelmingly promote domestic consumption, accelerate local economies on a short-term basis and contribute to the national economic growth.
Deputy Finance Minister Julapun Amornvivat said the much-heralded, yet-delayed project is not only about the handed-out money for the people to spend via their digital wallet on purchases of merchandise in their home districts but generate cash flows throughout the country and help create a data lake for the government to effectively address unresolved problems about their welfare needs and financial conditions which may vary from one area to another.
The 10,000-baht handout provided via digital wallet for each eligible Thai national would not only be spent up on consumption of goods but be spared for investment on household businesses, among others, according to the deputy finance minister.
Julapun reassured that the manufacturing industry would be strengthened and more jobs created in all parts of the country alongside increased domestic consumption nationwide under the digital wallet project.
Of the total 122 billion baht supplementary budget, a sum of 112 billion baht would probably be obtained by way of issuing government bonds by the Ministry of Finance to cover a corresponding amount of budget deficit for the current fiscal year whilst the 10 billion baht balance would probably be remitted by Thai Asset Management Corp under care of the Ministry of Finance.
The bill has smoothly sailed through the House since the government opted out from an earlier plan to borrow a sum of 172.3 billion baht in loan from the Bank for Agriculture & Agricultural Cooperatives for fear of terminally breaking the law governing the farmers-aiding agency.
Prior to the House voting on the contentious legislation, Move Forward MPs contended that the 122 billion baht supplementary budget would not effectively solve national economic problems or substantially improve the poor people’s welfare whilst the country’s financial and treasury discipline would be unduly compromised.
Move Forward MP Sirikanya Tansakun said the 450 billion baht digital wallet project for which the 122 billion baht supplementary budget is being provided will increase the government’s loan-borrowing volume to an alarming total of 805 billion baht against a provided ceiling of 815 billion baht for the current fiscal year without being obviously ascertained as to how long it will take the government to repay.
Move Forward MP Parit Wacharasindhu said a combined 175 billion baht in government budget earlier earmarked for social welfare projects and others would be completely denied and sacrificed for the Pheu Thai-initiated populist handout campaign.
Other Move Forward MPs doubted that the whole 450 billion baht project would be very cost-effective and expressed common concern over the probability that the populist campaign might be more pain than gain since it accounts for 2.7% of the country’s GDP but it would eventually contribute no more than 1% to the GDP.
Opposition lawmakers suggested that the Pheu Thai flagship campaign be provided for as many as 20 million Thais currently employed by service sector such as spa and massage parlours as well as beauty salons and car-wash garages in all parts of the country whilst purchases of electrical appliances and cellphones be categorised as merchandise provided under the digital wallet campaign.
They concluded that giant consumer-goods manufacturers, suppliers and affiliated convenience store chains would almost certainly benefit a great deal from the questionable project whilst the country would certainly bear more public debt due to the 450 billion baht scheme from which, they said, most people would not get better off.
CAPTION:
Representative images of the digital wallet project. Top photo: Sanook.com, Front Page photo: Thai Rath
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