The Finance Ministry expects to receive an answer regarding the legality of the 10,000-baht digital wallet handout from the Council of State no later than the beginning of 2024, with the scheme debuting in May, says Deputy Finance Minister Julapun Amornvivat.
The ministry consulted the Council of State about the legality of a borrowing bill totalling 500 billion baht to finance the scheme earlier this month.
The council is expected to take two weeks to finish its vetting, with an answer by early next year, said Mr Julapun.
Section 53 of the 2018 State Fiscal and Financial Discipline Act stipulates government loans not covered by the law on public debt administration are permissible, provided the Finance Ministry follows the law, and only if there is an urgent need for action to resolve a critical problem where annual appropriations cannot be fixed in due time.
Mr Julapun said the question posed to the Council of State does not address whether the economy is in crisis, as it is not their duty to make that assessment.
He said if the council concludes the bill is in line with the fiscal and financial discipline law, the government must analyse the economy to determine whether it fits the definition of a crisis, considering variables such as GDP growth in the third quarter, which expanded by only 1.5%, according to the National Economic and Social Development Council.
The borrowing of 500 billion baht through the issuance of government bonds would not instantly create a debt burden because the loan would be made only after the digital money was exchanged or cashed out from the state bank, said Mr Julapun.
The digital wallet scheme is expected to stimulate the economy, as the government set a target for average annual GDP growth of 5% during its four-year term.
If the economy can expand at such a level, public debt is estimated to account for around 60% of GDP.
As of October, the debt-to-GDP ratio was 62.1%.
The 10,000-baht digital wallet handout is expected be offered to Thais aged 15 and older who earn less than 70,000 baht per month and have less than 500,000 baht in bank deposits.
