The government seems undaunted by the reservations about its flagship 10,000-baht digital wallet scheme expressed by a panel under the National Anti-Corruption Commission (NACC) and the Council of State.
Instead, it is sending a strong signal that it plans to go ahead with the huge handout.
Deputy Prime Minister and Commerce Minister Phumtham Wechayachai downplayed the warning by the NACC panel, headed by Supa Piyajitti, which was subsequently leaked to the media.
He said the government had to wait for the NACC's broader recommendations and also for Prime Minister Srettha Thavisin to return from his trip to Switzerland. In the interim, the deputy premier ordered the digital wallet policy committee to postpone its meeting next Tuesday.
It is bewildering to see Deputy Finance Minister Julapun Amornviwat staunchly challenge the Supa panel's study, especially the remarks suggesting the scheme could be regarded as policy-oriented graft.
In its 177-page study, the panel recommended the government prove the scheme would benefit the public, not any particular political party or business giant.
The viability of the 500-billion-baht scheme became an issue given changes to how it would be funded, from the national budget to seeking out loans. When campaigning for voters' support, ahead of last year's May 14 election, the now-ruling Pheu Thai Party said it would not resort to loans.
However, these are now firmly on the horizon and threatening to burden the country and potentially catapult it into another economic crisis, as defined by the World Bank and the International Monetary Fund (IMF).
While the economy is already looking somewhat fragile, this level of financial burden could adversely affect state expenditures and investment for the next 4-5 years.
The Election Commission should step in and examine the aforementioned changes to the scheme, to see if they violate the political parties act that is designed to prevent parties from benefitting from populist but unrealistic promises.
The Council of State has cautioned that such huge loans could compromise the laws governing state financial discipline, and the government has to seek a consensus from key agencies like the National Economic and Social Development Council, the Finance Ministry, and the Bank of Thailand.
The thumbs-down by the NACC and the Council of State bodes ill not only for this scheme but for the Pheu Thai-led coalition.
By turning a deaf ear to such criticism, the government may face the same fate as the former Yingluck Shinawatra government that dismissed criticisms against its rice-pledging scheme, which was riddled with irregularities.
Yingluck was slapped with a five-year jail term for allowing widespread corruption and fled the country in 2014, while ex-commerce minister Boonsong Teriyapirom and others are still serving time.
If the government insists on maintaining the digital wallet scheme, it has to forward a loan bill to parliament this May.
Moreover, the financial handout -- of 10,000 baht to every Thai aged 16 years and over who meets certain criteria in terms of their income and savings -- is due to kick off in the last quarter of 2024 and run until Q1 2025.
It's not too late for the government to step back and avoid repeating past mistakes.