On April 10th, Mr. Lavaron Sangsnit, Secretary of the Ministry of Finance, disclosed the sources of funding for the 10,000 baht Digital Wallet project. He stated that the 500 billion baht budget will be allocated from the 2024 and 2025 budget management, divided into three parts:

  1. The 2025 budget, contributing 152.7 billion baht
  2. Funds from operations through government agencies, amounting to 172.3 billion baht. These funds will be used under Section 28 of the State's Fiscal Discipline Act, with the Bank for Agriculture and Agricultural Cooperatives (BAAC) overseeing a group of 17 million farmers through the mechanism of Section 28 of the 2025 budget.
  3. The government's own budget for 2024, contributing 175 billion baht.

Following a statement from the Ministry of Finance, some people are expressing concerns about the liquidity of the Agriculture and Agricultural Cooperatives (BAAC). They are indicating that they might withdraw their money. Additionally, several social media posts depict individuals allegedly rushing to pull their funds from the BAAC.

Claims on Social Media

Following the announcement of the digital wallet's funding source, Facebook users have shared images of large crowds gathered outside the Bank for Agriculture and Agricultural Cooperatives (BAAC), accompanying the posts with messages indicating that people are withdrawing money.

Source | Archive

Source | Archive

However, upon the investigation, we found that the provided image does not represent the current situation.

Fact Check

We conducted a fact-check using the Reverse Image Search feature. We found that the image originated from a news story several years ago. The first image is from the news story, People in the north queue to withdraw money from the low-incomer project, at the BAAC, Nakhonsawan Branch, on December 13, 2016.

Source: MGR Online (Archive)

Another image being widely shared with the preceding claim also originates from old news. It's from the article titled Farmers are waiting to withdraw remedial money, which reported on the government transferring funds through a bank account at the BAAC, Sobprab branch, Lampang province, on May 22, 2020.

Source: MGR Online (Archive)

Additionally, on the evening of April 10th, the Pheu Thai Party denied the allegations through the party's X account.

Archive

On the same day, the Bank for Agriculture and Agricultural Cooperatives (BAAC) clarified its role in the 10,000 baht digital money distribution policy. BAAC stated,

"The BAAC is a special state financial institution aimed at providing financial assistance to farmers, farmer groups, or agricultural cooperatives under the BAAC Act.

In the past, it has supported various government projects, providing loans and serving as a source of operational funds. The BAAC continues to manage its liquidity and strength according to financial institution standards.

The 'Digital Wallet' project is another government initiative related to recipient farmers. The BAAC is currently coordinating details to operate within the legal framework and manage risks appropriately." (Source)

What to Know about “Digital Wallet” Scheme

The Thai government, under Prime Minister Srettha Thavisin, has greenlit a significant economic initiative dubbed the "Digital Wallet Policy". This scheme involves a digital wallet stimulus of 500 billion baht (around $13.51 billion), funded by the fiscal budget for 2024-2025. The resources will be drawn from the 2025 fiscal budget (152.7 billion baht), the 2025 budget of the Bank for Agriculture and Agricultural Cooperatives (172.3 billion baht), and the 2024 fiscal budget (175 billion baht).

Recipients of this initiative are Thai citizens who are at least 16 years old, have an annual income not exceeding 840,000 baht, and have less than 500,000 baht in their bank accounts. They will receive a 10,000 baht handout via a “super app” created by the Digital Economy and Society Ministry. All banks can support this open-loop model.

The handout can be used at designated stores in the recipients' local districts. However, it cannot be used to buy “sin” goods, fuel, services, or online items. To curb fraudulent activities, the government intends to form a committee, which will include members of the Cyber Crime Investigation Bureau.

The primary aim of this policy is to provide financial aid to vulnerable groups. Additionally, it is designed to spur economic growth. Government officials predict that the handouts could elevate the country’s GDP by 1.2-1.6%, and perhaps up to 1.8%. (Source: The Nation, TIME)

The Bank of Thailand (BOT) has expressed its concerns regarding the government's 500 billion baht digital wallet scheme. The BOT is apprehensive about the extensive loans required for the scheme, as it could potentially affect Thailand's credit rating negatively. However, the Cabinet has given its preliminary approval for the scheme. The BOT's primary concern is the potential debt that could arise from funding the scheme, which may lead to a downgrade of Thailand's credit rating from its current Baa 1 (stable outlook) by Moody's. This situation underscores the financial considerations and challenges in implementing a large-scale economic stimulus initiative. (Source)

Summary

Contrary to social media posts suggesting that people are withdrawing money from the Bank for Agriculture and Agricultural Cooperatives (BAAC) due to the government's Digital Wallet project, these images actually stem from news stories dating back to 2016 and 2020. They do not reflect current events. Furthermore, BAAC has clarified its role and confirmed its financial stability in supporting this scheme.

Follow us and stay up to date with our latest fact checks.

Facebook | Twitter | Instagram | LINE | TikTok | WhatsApp

Avatar

Title:Claims of mass BAAC withdrawals due to the Digital Wallet scheme are misleading

Fact Check By: Fact Crescendo Team

Result: Misleading