The government has agreed to ask the Council of State, its legal arm, to interpret whether the Bank for Agriculture and Agricultural Cooperatives (BAAC) can legitimately allow the government to borrow 172.3 billion baht to finance its digital wallet handout scheme partially.
The resolution was reached at a meeting of the coalition parties on Tuesday. It was called for them to discuss matters surrounding the planned implementation of the ruling Pheu Thai Party's 500-billion-baht handout scheme.
"All concerns, including the matter of the [questionable] authority and responsibility of the BAAC, will have to be forwarded to the Council of State. That's what all the coalition parties have just agreed on," Prime Minister Srettha Thavisin said afterwards.
However, he stopped short of elaborating on this development and refused to answer questions from Government House reporters, merely saying Deputy Finance Minister Julapun Amornvivat had more details and should be quizzed on the matter.
Mr Julapun took over and answered why the exact date for the launch still has not been fixed, saying the government needs to wait until it knows exactly when the operating system for the scheme will be ready first.
"This part of the work is very important as it deals with the efficiency and security of applications and people's personal data as well as sensitive data managed by government agencies," Mr Julapun said.
The government is confident it will still be able to follow the announced timeframe for registering eligible people in the third quarter of this year and giving out the digital money later in Q4, he noted.
All people aged 16 and older who earn no more than 70,000 baht a month are eligible to receive 10,000 baht in digital money intended for spending at local shops, in a grassroots economic stimulus measure the government believes will yield a high economic return.
But Mr Julapun admitted that the government has yet to seek approval from the BAAC board on the plan to borrow 172.3 billion baht from the bank, saying the government would do so later, possibly in October.
The digital wallet scheme will be financed by three sources of funding -- 152.7 billion baht from the budget for the 2025 fiscal year; 175 billion baht from the reallocation of the budget for the current fiscal year; and 172.3 billion baht to be borrowed from the BAAC.
"There are still four to five months left for the government to assure all sides about the legality of its planned implementation of the digital wallet scheme by consulting with the Council of State on any doubts raised about it," said Mr Julapun.
While waiting for the council to rule, the government will be working on the parts of the scheme that can be dealt with now, he said.
Asked if the BAAC could see a liquidity crisis if it lends so much money, Mr Julapun said the bank has sufficient liquidity and will continue to do so.
Responding to concerns from the bank's labour union over the potential impact on the bank's financial security, Mr Julapun said he could assure all staff that their work benefits would not be affected.
"The BAAC is financially secure. Don't forget that all shares of the bank are held by the government," he said, adding measures will be sought to ensure it maintains sufficient liquidity.
The digital wallet scheme is expected to help the economy gather momentum and thrive for at least three or four years, said government spokesman Chai Wacharonke.
Thailand's economy is projected to grow by an extra 1.2% to 1.8% due to the scheme, as the digital money will multiply by 3.2 to 3.5 times, said Mr Chai.