House of Representatives, The Governor of the BoT wrote a letter to the Cabinet warning against moving forward with a 10,000 baht digital wallet, fearing that it would create a lot of debt. Mr. Setthaput Suthiwatnarueput The Governor of the Bank of Thailand (BoT) has written a letter to the Cabinet Secretariat dated 22 April 2024 to offer opinions for consideration at the Cabinet (Cabinet) meeting on 23 April 2024. that the 10,000 baht digital wallet top-up project is a large-scale project in the country It takes a lot of money. It may cause debt obligations to the government in the future as follows: 1. Necessity of the 10,000 baht digital wallet top-up project and its impact on the country's fiscal stability. Care should be taken to cover only the target group. In order to lighten the burden of living expenses Help stimulate the economy in an efficient and cost-effective manner. and use a reduced budget Especially vulnerable groups has not yet fully recovered, such as those with low incomes or 15 million welfare card holders, which can be processed immediately and a budget of only 150,000 million baht and should be done in phases (phasing) to reduce the impact on fiscal stability. The need to stimulate consumption on a large scale is not great. In 2023, Thailand's private consumption expanded by 7.1 percent, compared to an average expansion of 3 percent per year from 2010 - 2022. The 10,000 baht digital wallet top-up project creates a large fiscal burden in the long run. and if unable to stabilize the government debt burden It will increase the risk that Thailand's credit rating will be downgraded. For example, Moody's evaluation criteria has determined that the interest expense-to-income ratio of countries in the Baal group (Thailand's current rating) should not exceed 11 percent. that the digital wallet top-up project of 10,000 baht will cause rates to exceed the threshold in 2025 if Thailand is downgraded in its credit rating This will cause the cost of borrowing from the public and private sectors to inc rease. Increasing the loan limit for fiscal year 2025 to almost the full limit specified by law. This leaves another loan limit of approximately 5,000 million baht, compared to the average remaining balance of more than 100,000 million baht in previous years. This may affect the allocation of credit lines from the 2024 budget, causing the central budget to pay for emergencies or needs to decrease to the point that it may not be sufficient to support emergencies. Under the global political situation, uncertainty is high and natural disaster conditions are becoming more severe. The government should consider the value of using the budget of 500,000 million baht to invest in solving structural problems and raising the economic potential of the country in the long term. Examples of past budget uses include the Medical Personnel Development Project (using an average budget of 3.8 million baht per position), creating more than 130,000 medical personnel positions, the 15-year free education project for students na tionwide (83,000 million baht per year), supported for a long time. Up to 6 years, the double-track railway project from Nakhon Pathom - Chumphon (40,000 million baht per line) can develop more than 10 lines. The Blue Line Project (190,000 million baht per line) can develop more than 2 lines. 2. Source of funds for implementing the 10,000 baht digital wallet top-up project, with a budget of 500,000 million baht, taken from the expenditure budget. and borrow money from the BAAC, with the government accepting the burden of compensation for expenses or loss of income according to Section 28 of the Fiscal Discipline Act. It must not conflict with the control of the currency system. and providing financial assistance to farmers It should be legally clear that such actions are within the authority and authority and are governed by the law. Objectives of BAAC In order to ensure that the operation is carried out correctly and carefully, it is proposed that the Cabinet assign the Ministry of Finance to consult with the BoT Council of State as the person overseeing the risks and status of specialized financial institutions. There is concern that The government will assign the BAAC to support the digital wallet top-up project of 10,000 baht, with an outstanding debt burden with the BAAC of approximately 800,000 million baht. 3. The system developer for the 10,000 baht digital wallet top-up project is considered complex and must support a large number of users. Therefore, it must be a system that is efficient, stable and has sufficient security. In order not to cause systematic risk, the BoT is concerned about the development and operation of the system. Therefore, the PromptPay and Thai QR Payment systems should be used to avoid duplication. Reduce system development costs and make the most of it from existing payment infrastructure With the conditions for exercising rights being complex in many dimensions. Including being an open-loop system, it must connect to a variety of service providers. The structure should be de fined. and a clear system architecture as well as complete and concise development and testing plans in order not to cause systematic risk Supports a large number of users, preventing them from getting stuck or spending that is not in line with the project conditions. 4. Risk management of leaks or corruption Responsible agencies should establish mechanisms to reduce the risk of leaks or corruption. in various concrete steps Especially issues where problems should be expected from the beginning, such as guidelines for checking the income and assets of project participants to meet the specified qualifications. Preventing registration as a fake store Determining the type and size of stores to accommodate spending conditions on prohibited products. The BoT is of the opinion that Consideration of the framework of principles and Various details of the 10,000 baht digital wallet top-up project are detailed. Complicated, uses a large budget Affecting the fiscal burden in the long run There is a risk of leakage or corruption in various steps, so it must be fully tightened. Therefore, it is proposed that the Cabinet assign relevant agencies. Review and present additional information As well as creating guidelines or measures to solve various problems or risks in a concrete manner. Source: Thai News Agency