BANGKOK (AP) — Eligible businesses and individuals can register starting in August for digital cash handouts, Thailand’s prime minister said Monday, controversial program This would cost billions of dollars, and is aimed at boosting the struggling economy.
In April, the government announced an ambitious and widely criticized plan, called the Digital Wallet, that aims to give 50 million citizens 10,000 baht (about $275) in digital money to spend at local businesses.
Prime Minister Sritha Thavisin posted on social media platform X, saying that registration will begin on August 1 and that he has given instructions to ensure smooth implementation of the programme.
The “digital wallet” was a key campaign promise made by Sreetha’s ruling Pheu Thai Party ahead of last year’s general election. The government says the scheme would cause an “economic hurricane,” and Sreetha said the stimulus and subsequent consumption were expected to boost GDP growth by 1.2 to 1.6 percentage points.
But economists have criticised the programme as an ineffective way to contribute to sustainable economic growth compared to other measures.
Moreover, the project’s financing has faced several hurdles, delaying its planned implementation. Initially, the government said that the State Bank of Agriculture and Agricultural Cooperatives would cover some of the required funding. However, following warnings from financial experts, it was announced that the project’s financing would come from the 2024 and 2025 fiscal budgets.
The budget funding was made possible after the estimated cost of the scheme was reduced from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion), Deputy Finance Minister Julapan Amornviat told a news conference on Monday, stressing that all estimated 50 million people would remain part of the programme as only up to 90% of those eligible had used previous aid.
Golaban added that the Digital Wallet Committee has agreed to disqualify tens of thousands of store owners and cash recipients who have a history of committing fraud in previous programs.
The plan also includes some restrictions, such as excluding some yet-to-be-identified goods, with previous proposals suggesting oil, services and online purchases would be among those. The Commerce Ministry will deal with the exemptions, which are due to be announced next week, after submitting the detailed plan to the Cabinet, Gulban said.
Thailand has been suffering from an economic slowdown in recent years that appears to be deteriorating without any clear signs of growth. This month, the World Bank’s Thailand Economic Monitor report forecasts GDP growth of 2.4% by 2024.
The ruling Pheu Thai Party had initially proposed digital wallet payments for all Thais aged 16 and over, but later restricted it to only low-income Thais, defined as people with an annual income of no more than 840,000 baht (about $23,000) and savings in financial institutions totaling no more than 500,000 baht ($13,700).