BANGKOK (AP) — Thailand’s prime minister said Monday that eligible businesses and individuals will be able to register for digital cash transfers starting in August. Controversial Program It will cost billions of dollars and is aimed at jump-starting the struggling economy.
In April, the government unveiled an ambitious and widely criticized plan, “Digital Wallet,” that was meant to give each of Thailand’s 50 million citizens 10,000 baht (about $275) in digital money to spend at local businesses.
Prime Minister Suretya Tavisin posted on social platform X that registrations would open from August 1 and gave instructions to ensure the program’s smooth implementation.
The “digital wallet” was a key campaign promise of Mr. Suretha’s ruling Pheu Thai Party ahead of last year’s general election. The government has said the plan would create an “economic tornado,” with Mr. Suretha predicting the stimulus and resulting spending will boost gross domestic product (GDP) growth by 1.2 to 1.6 percentage points.
But economists have criticized the program, arguing that it is an ineffective way to contribute to sustainable economic growth compared to other measures.
Moreover, financing has faced several obstacles, delaying planned implementation. The government initially said part of the required funds would be covered by the state-run Agricultural Bank and agricultural cooperatives. However, following warnings from financial experts, it was announced that the project would be funded from the 2024 and 2025 budgets.
Deputy Finance Minister Julaphan Amornbiwat said at a press conference on Monday that the budget was possible because the estimated cost of the plan had been reduced from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion), and insisted that all estimated 50 million people would remain on the program because previous payments only allowed up to 90 percent of those eligible to take advantage.
Jullapan added that the digital wallet committee had agreed to exclude tens of thousands of shopkeepers and cash takers with a history of committing fraud in past programs.
The plan also comes with certain limitations, such as the exclusion of certain items that have yet to be determined. Previous proposals have suggested that it could include petroleum, services and online purchases. Julapan said the Ministry of Commerce will handle any exclusions, which are expected to be announced next week, after the detailed plan is presented to the cabinet.
Thailand has suffered from economic stagnation in recent years, which appears to be worsening with no clear signs of growth. This month, the World Bank’s Thailand Economic Monitor projected GDP growth of 2.4% in 2024.
The ruling Pheu Thai Party initially proposed digital wallet payments for all Thais over the age of 16, but later limited it to low-income earners with annual incomes of up to 840,000 baht ($23,000) and total savings in financial institutions of up to 500,000 baht ($13,700).
