The Bank of Thailand (Photo: reuters.com) Bangkok (VNA) – Thai government’s plan to fund a 500 billion THB (14.3 billion USD) cash handout with a special borrowing legislation got the green light from its legal adviser, clearing a key hurdle to Prime Minister Srettha Thavisin’s controversial stimulus programme.
Deputy Finance Minister Julapun Amornvivat on January 8 revealed that the Council of State said it is within the government’s power to enact the borrowing bill for the cash stimulus programme.
According to the digital wallet scheme, the Thai government plans to give away 10,000 THB each to about 50 million Thais 16 years old and above starting from May 2024 to turbocharge growth in Southeast Asia’s second-largest economy.
Julapun said that a committee tasked to oversee the cash handout programme will meet soon to discuss the draft bill and plan the timeline of cash distribution.
The so-called digital wallet plan can still face legal challenges from those opposed to the handout. The move to borrow money for the programme has triggered a backlash, including from Thailand’s opposition parties, some former central bankers and economists on concerns that move may widen the fiscal deficit and stoke inflation.
The premier is aiming to accelerate annual growth in Thailand that has lagged neighbours and averaged below 2% in the past decade, to 5% during his term. Earlier, the House of Representatives passed the first reading of Srettha’s 3.48 trillion THB budget plan for the fiscal year through September 30, 2024./.
