The plan to fund a US$14 billion (HK$109.2 billion) cash handout with a special borrowing legislation got the green light from its legal adviser - clearing a key hurdle to Prime Minister Srettha Thavisin's controversial stimulus program.
The Council of State said it is within the government's power to enact the borrowing bill for the cash stimulus program.
The green light from the Council allows Srettha's government to proceed with the plan to give out 10,000 baht (HK$2,240) each to about 50 million Thais 16 years old and above starting May to turbocharge growth in Southeast Asia's second-largest economy.
The so-called digital wallet plan could still face legal challenges from those opposed to the handout.
The move to borrow money for the program has triggered a backlash - including from Thailand's opposition parties, some former central bankers and economists - on concerns that move may widen the fiscal deficit and stoke inflation.
The premier is aiming to accelerate annual growth in Thailand that has lagged neighbors and averaged below 2 percent in the past decade, to 5 percent during his term.
Last week, the House of Representatives passed the first reading of Srettha's US$100 billion budget plan for the fiscal year through September 30.
A committee tasked to oversee the cash handout program will meet soon to discuss the draft bill and plan the timeline of cash distribution, the council said.
AFP
