Bangkok, “Anusorn” Economist It is expected that the government may increase the semi-fiscal borrowing ceiling under Section 28 to 35% of the budget. If the BAAC borrows 170 billion to support the distribution of digital wallets to farmers, compensation must be 40-50 billion per year.

Assoc. Prof. Dr. Anusorn Thamjai, former member of the Public Debt Management Policy and Supervision Committee Ministry of Finance and former Director and Chairman of the Risk Management Committee The Bank for Agriculture and Agricultural Cooperatives (BAAC) revealed that BAAC is a state bank that helps farmers according to government policy. Using the remaining liquidity of the BAAC to support the digital wallet distribution project. By borrowing 170 billion baht, it must be done on the following conditions.

First, there must be confidence that the BAAC has sufficient liquidity to support government projects.

Second, confidence must be built in depositing money with the BAAC.

Third, separate the PSA account to support the
policy of distributing 10,000 baht digital wallet with the general operating account.

Fourth, set up a repayment and income compensation plan. By clearly allocating a budget for compensation and repayment to the BAAC of 40-50 billion baht per year if 10,000 baht of digital money is supported according to the law and good risk management. There won’t be any problems. to the financial position of the BAAC and the money distributed to farmers should be used to create careers, increase income, and develop knowledge in agriculture

Fifth, the distribution of digital wallets through the use of BAAC liquidity is a quasi-fiscal measure and the creation of binding debt through government agencies in accordance with Section 28 of the Fiscal Discipline Act. of the state To control the government from spending more than it should. The government can raise the debt ceiling and obligations under Section 28 of the Fiscal Discipline Law from 32 percent to 35 percent of the budget. If it is necessary to use money outside the
budget to take care of the people or solve economic problems. But be careful, these obligations will become public debt. The government cannot collect taxes or raise more revenue in the future.

“Giving to the State Bank Support government policy Then gradually set a budget to compensate state enterprises for expenses and income later in accordance with Section 28. This is considered “non-budget money” as a “quasi-fiscal measure” and therefore is not counted as public debt for the first time. Therefore, it may cause an underestimation of the public debt. At the end of 2024, when the BAAC takes care of 17 million farmers through the Section 28 mechanism of fiscal year 2025, it can be carried out according to the 5 conditions above. Managing risks under good corporate governance (Good Governance) will make the measures achieve economic goals in both dimensions of growth. The dimension is fair and does not cause more fiscal risks in the future.’

Source: Thai News Agency