Thailand Rolling Out $13.8-B Digital Money Handout Scheme To Citizens

Thailand’s prime minister said that eligible businesses and individuals can register from August for digital cash handouts, a controversial program that will cost billions of dollars and is meant to boost the lagging economy, Jintamas Saksornchai reported for the Associated Press (AP).

The “Digital Wallet” was a major campaign promise of the ruling Srettha’s Pheu Thai party ahead of last year’s general election.

The government announced in April the widely criticized ambitious plan, named the “Digital Wallet,” meant to give 10,000 baht (about $275) to 50 million citizens in digital money to spend at local businesses.

Prime Minister Srettha Thavisin posted on the social platform X, saying the registration will begin Aug. 1 and that he has given instructions to ensure the smooth implementation of the program.

However, economists have criticized the program, calling it an ineffective way to contribute to sustainable economic growth compared to other measures.

The “Digital Wallet” was a major campaign promise of the ruling Srettha’s Pheu Thai party ahead of last year’s general election.

The government says that this scheme will cause an “economic tornado” and Srettha has said the stimulus and subsequent consumption are expected to boost gross domestic product (GDP) growth by 1.2 to 1.6 percentage points.

At first, the government said the state Bank for Agriculture and Agricultural Cooperatives would cover some of the funding needed. However, after warnings by financial experts, it was announced that the project’s funding would come out of the 2024 and 2025 fiscal budgets.