Thailand’s digital wallet disaster: MFP oppose budget

Opposition parties have taken a firm stand against the supplementary budget bill, targeting the controversial digital wallet scheme. Estimated at a staggering 450 billion baht, the scheme is criticised for its alleged inefficacy in boosting the GDP and potential legal issues, which could set a detrimental precedent for future national budgeting and fiscal policies.

Sirikanya Tansakul, Deputy Leader of the Move Forward Party (MFP), urged coalition parties to reject the flagship policy of the Pheu Thai Party. She warned that supporting the digital wallet scheme might implicate them in legal violations and expose Thailand to significant financial risks.

The Lower House engaged in a heated debate over the government’s mid-year budget bill, which seeks an additional 122 billion baht to address funding shortfalls after the decision to avoid borrowing from the Bank of Agriculture and Agricultural Cooperatives (BAAC).

With registrations for the scheme set to begin in just 15 days, Sirikanya pointed out the ambiguity surrounding the ministry or agency responsible for the scheme’s implementation. The disbursement of the promised 10,000 baht benefit to Thai citizens also remains unclear, despite two companies winning the bid to design the system.

Sirikanya expressed concerns that major retail outlets, with their robust financial backing, would disproportionately benefit from the scheme, leaving small retailers struggling due to weak liquidity. The scheme’s funding, scaled down to 450 billion baht, assumes only 90% of eligible participants will register. Sirikanya labelled the scheme a face-saving effort by the government to uphold its election promises.

With GDP growth projections downgraded from 2.7% to 2.5%, Sirikanya criticised the government for failing to adjust its revenue projections. She highlighted the 26 billion baht shortfall in revenues over the past eight months, casting doubt on the government’s ability to meet its revenue forecast.

Regarding the underutilised 100 billion baht Central Fund, Sirikanya argued that it should have been deployed to alleviate financial burdens from electricity and oil prices or to aid those affected by flooding and drought.

She accused the government of hesitating to use the fund in anticipation of needing it for the digital wallet scheme. She also criticised the government’s plan to transfer 2024 fiscal year funds to the next year, claiming it breaches fiscal discipline principles, reported Thai PBS World.