BANGKOK, Thailand: Thailand's prime minister announced that eligible businesses and individuals can register from August for digital cash handouts.
This controversial program, costing US$13.8 billion, aims to boost the lagging economy.
In April, the government unveiled the ambitious Digital Wallet plan, promising 10,000 baht (about $275) in digital money to 50 million citizens for spending at local businesses. Registration begins on August 1, according to Prime Minister Srettha Thavisin, who has instructed officials to ensure the program's smooth implementation.
The Digital Wallet was a significant campaign promise of the ruling Pheu Thai party before last year's general election. The government claims this scheme will create an "economic tornado," with Srettha predicting a boost in gross domestic product growth by 1.2 to 1.6 percentage points.
However, economists criticize the program, arguing it is an ineffective method for sustainable economic growth. Financing the plan has faced hurdles, delaying its launch.
Initially, the state Bank for Agriculture and Agricultural Cooperatives was to provide funding. After financial experts' warnings, the government decided the project would be funded from the 2024 and 2025 fiscal budgets.
Deputy Minister of Finance Julapan Amornvivat announced the budget became feasible after the plan's cost dropped from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion). Julapan asserted that all 50 million people would still be included, as previous handouts were utilized by up to 90 percent of eligible individuals.
The Digital Wallet committee will exclude tens of thousands of shop owners and cash recipients with fraud records in past programs. The plan also has limitations, excluding certain goods that have yet to be decided. Proposed exclusions include oil, services, and online purchases, with the Commerce Ministry handling the details to be announced next week.
Thailand's economy has been sluggish, with the World Bank projecting GDP growth of 2.4 percent for 2024. Initially, the Pheu Thai party suggested digital wallet payments for all Thais aged 16 and older, but this was later limited to lower-income Thais-defined as those with yearly incomes not exceeding 840,000 baht (about $23,000) and savings not exceeding 500,000 baht ($13,700).