Finance Ministry Uses Loan Decree for Welfare Card Budget (18.8 Billion Baht)

Thansettakij•Economy•1h ago

Reader Briefing

Thai government invokes emergency loan decree to allocate 18.8 billion baht for welfare card holders, citing cost of living crisis.

•The Ministry of Finance is using an emergency loan decree to fund a 18.8 billion baht deficit in the welfare card budget.
•This allocation is intended to alleviate the impact of high oil prices and inflation on low-income citizens.
•The funds will be used to supplement existing welfare benefits, providing an additional 700 baht per month for four months.
•The government asserts legal justification for using the loan decree under Section 5(1), intended for crisis relief.

Overview

•The Ministry of Finance confirmed the use of the emergency loan decree to address a budget shortfall for the welfare card scheme.
•A total of 18,800 million baht will be allocated from the 400,000 million baht loan for the welfare card budget.
•Vulnerable groups holding state welfare cards will receive assistance to mitigate the cost of living crisis.
•The shortfall arose because the planned new registration process for welfare cards could not be completed as scheduled.
•The government will provide an additional 700 baht to the usual 300 baht for consumption expenses, totaling 1,000 baht for four months.
•The Ministry of Finance stated that the use of these loan funds is legally permissible under Section 5(1) of the emergency loan decree for crisis relief.
•The allocation is necessary due to ongoing projects awaiting funding and the need to manage budget deficits amid rising inflation and oil prices.
•The 200,000 million baht second portion of the loan is designated for energy transition initiatives, with project contracts to be finalized by September 30, 2027.

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Key Quotes

Winid

"Regarding the legal aspect of the 400 billion baht emergency loan decree, it is confirmed that the use of this loan under these conditions is permissible and has been screened according to Section 5(1) of the decree, which aims to provide relief to the public from the crisis."

ในประเด็นด้านกฎหมายตามพ.ร.ก.กู้เงิน 4 แสนล้านบาทนั้น ยืนยันว่า การใช้เงินกู้ตามเงื่อนไขนี้ สามารถทำได้และผ่านการกลั่นกรองตามมาตรา 5 (1) ของ พรก. เงินกู้แล้ว ซึ่งมีวัตถุประสงค์เพื่อการเยียวยาประชาชนจากวิกฤต

Key Entities

Organization

Ministry of Finance(กระทรวงการคลัง)ℹ️

The government organization responsible for managing the national budget and implementing financial policies.

Pracharat Fund(กองทุนประชารัฐฯ)

A government fund established to support social welfare initiatives.

Cabinet(ครม.)ℹ️

The executive body of the Thai government, responsible for approving major financial and policy decisions.

Virtual Bank

A proposed type of financial institution that operates entirely online and is a concern for the Ministry of Finance regarding disruption.

Pico Finance(พิโกไฟแนนซ์)

A type of microfinance institution that the Ministry of Finance fears may be disrupted by virtual banks.

Law

400 Billion Baht Emergency Loan Decree(พ.ร.ก.กู้เงิน 4 แสนล้านบาท)

The emergency decree authorizing the government to borrow up to 400 billion baht for economic relief and crisis management.

Section 5 (1)(มาตรา 5 (1))

A specific provision within the emergency loan decree that outlines the permissible uses of the borrowed funds, including crisis relief.

Section 45(มาตรา 45)

A section of the Budget Procedures Act related to contingency funds and reserve accounts.

Contingency Fund(ทุนสำรองจ่าย)

A reserve fund established under the Budget Procedures Act for unforeseen expenditures.

Budget Procedures Act(พ.ร.บ.วิธีการงบประมาณ)

The law governing the process of budget allocation and expenditure in Thailand.

Policy

Welfare Card(บัตรคนจน)

A government assistance program providing financial aid to low-income citizens.

Person

Mr. Winid(นายวินิจ)

An official from the Ministry of Finance providing justification for the financial decisions.

Minister of Finance(รมว.คลัง)

The political head of the Ministry of Finance, possessing authority over treasury funds.

Somsak Anantawat(สมศักดิ์ อนันทวัฒน์)

Appointed in an interim capacity as the Director-General of the Revenue Department.

Director-General of the Revenue Department(อธิบดีกรมสรรพากร)

The head of the government agency responsible for tax collection.

Kulaya(กุลยา)

The former Director-General of the Revenue Department who was replaced.

Permanent Secretary of Finance(ปลัดคลัง)

The top-ranking civil servant in the Ministry of Finance, clarifying details about the use of emergency loan funds.