The National Anti-Corruption Commission on Wednesday warned the government its 10,000 baht digital wallet handout could be in breach of the constitution and other laws, and incur a long-term public debt burden.
NACC secretary-general Niwatchai Kasemmongkol told reporters the commission's opinion was based on a thorough study and consultations with representatives of relevant organisations, academics and other experts.
"If its implementation is through the normal budget process, not based on loans raised through borrowing legislation, it would reduce the risk of violating the constitution, the State Fiscal and Financial Disciplines Act and the Currency Act and, importantly, would not create a long-term public debt burden," he said.
Mr Niwatchai said the coalition-core Pheu Thai Party's digital wallet scheme announced during campaigning for the May 14, 2023, general election differs from the scheme the government announced in parliament on Sept 11, 2023.
"The Office of the Election Commission should check if this violates the constitution and the organic law on political parties... Otherwise it will set a precedent, that political parties do not have to realise their campaign policies after being elected," he said.
The NACC also found from its study that the 10,000 baht handout could be considered as policy corruption if it turns out to benefit particular political parties, politicians, individuals and conglomerates, which is more likely than benefitting small businesses, the NACC secretary-general said.
He also said the government planned to borrow 500 billion baht to implement the scheme, but its fiscal multiplier was only 0.4 (the degree to which spending on one product or service causes people and organisations to spend on other things as a result).
"Therefore, borrowing will create a long-term debt burden on the government and the people. Budgets must be allocated for four to five years to repay the debt and it will affect spending and investment in the government sector," Mr Niwatchai said.
The NACC suggested that to prevent adverse financial impacts, the government instead direct financial support to the poor when there is no economic crisis.
"The crisis indicators of the Bank of Thailand and information from studies by the World Bank and the International Monetary Fund point out that Thailand is not facing an economic crisis but an economic slowdown," according to the NACC study.
To stimulate the economy with stability and sustainability, the government should focus on economic structure, stimulate private consumption and spending and investment in the government sector, and develop workers' skills, the NACC said.
The commission also doubted the government's plan to use blockchain technology to implement the digital wallet scheme would be feasible, because the handout would be one-off within a six-month timeframe.
NACC secretary-general Niwatchai Kasemmongkol
