The government website has published opinion documents from 4 government agencies, the Budget Bureau Office of the Council of State The Economic Development Council and the Bank of Thailand regarding the 10,000 baht top-up project via digital wallet, according to the government’s most urgent letter asking for opinions, but I don’t know whether Prime Minister Settha Thavisin has read these comments or not. Because there is news that The Cabinet spent just over 20 minutes considering the digital wallet project. After that, a single version of the Bank of Thailand’s opinion book was released. But after the government website revealed all 4 opinion letters, 3 agencies expressed concern: Office of the Council of State, NESDB and the Bank of Thailand, but the Budget Bureau agrees with the government. The important issue that the NESDB and the Bank of Thailand are concerned about is “Fiscal risk” because the project to distribute 10,000 baht digital money has taken money from the 2024 budget in the amount of 175,000 million baht to distribute. Money from this 2024 budget, the government revealed that it will bring “Reserve funds for emergencies or necessity in the amount of 99,500 million baht” in the central budget were used almost entirely. But it’s still not enough. Money from various development projects must be brought back another 75,500 million baht, making the already meager investment budget even less. When natural disasters occur, such as floods and droughts, the government will not have any emergency funds to cover necessary expenses. which is very risky. In addition, the 2025 budget is used to distribute another 152,700 million baht, including money from the BAAC, another 172,300 million baht, which must be set up for repayment. Future BAAC, Ms. Danucha Pitchayanan, Secretary-General of the NESDB Comment with awe that From the trend of the Thai economy which is in a period of continuous recovery. But there is still a risk of being affected by the fluctuations in the global economic and financial system. and geopolitical tensions, therefore, using the annual budget as a source of financing for the project Actions should be taken to suit the economic situation. fiscal conditions and the framework for financial and fiscal discipline of the state including preparing support measures In the event that the Thai economy may be affected by the fluctuating situation of the world economy. geopolitical tensions and should consider setting guidelines for reducing fiscal impacts in the next period. NESDB warns the government to use the budget carefully. To be consistent with fiscal conditions Fiscal discipline framework and has supporting measures If affected by the fluctuations of the world economy Otherwise, the government might be broke and have to use a bomb-deterrent like the United States. As for the National Bank, Dr. Setthaput Suthiwat Narueput Governor of the National Bank He is a person who is very open and honest about the national financial system. Therefore give honest opinions. This made the Prime Minister not very satisfied. The Bank of Thailand opined that the DW (Digital Wallet) project should be implemented only for target groups that need assistance, such as those with low incomes. Or 15 million state welfare card holders can do it immediately and spend only 150,000 million baht, no need to distribute to 50 million people. People with low incomes tend to buy products produced within the country. More than products imported from abroad Domestic producers therefore benefit from the Bank of Thailand’s view that The need to stimulate consumption on a large scale is not great because in 2023, Thai private consumption expanded as high as 7.1 percent, equal to the average in 2017. 2010-2022, but what the Bank of Thailand is concerned about is that the DW project will create a large fiscal burden in the long run. If unable to stabilize the government debt burden It will increase the risk that Thailand’s credit rating will be downgraded. If Thailand’s credibility is lowered This will increase the cost of borrowing for the public and private sectors and may affect investor confidence. The damage will be greater than the gains from economic stimulus. Then Thai people will suffer all over the country. “Wind Change direction.” Click to read the column. Additional “Thailand Notes”
