Thailand's government is set to introduce a substantial digital cash handout initiative aimed at reviving the country's sluggish economy. With a budget of $13.8 billion, this program promises to benefit approximately 50 million citizens.
This article delves into the details of the initiative, its expected benefits, criticisms, and the future steps planned by the Thai government. Start reading to find out more about the topic!
The Digital Wallet Program
Thailand's Prime Minister Srettha Thavisin announced the Digital Wallet program, an initiative expected to inject much-needed cash into the economy. The launch date is set for August. The program will benefit around 50 million people and grant each citizen 10,000 baht (approximately $275).
The primary goals of the Digital Wallet program are to boost local businesses by encouraging spending within local markets and increasing GDP by 1.2 to 1.6 percentage points.
Despite its potential benefits, the plan has attracted criticism from economic experts. They argue it may not be a sustainable long-term solution for economic growth.
Funding And Budget Adjustments
The project was originally to be funded by the Bank for Agriculture and Agricultural Cooperatives. However, due to financial concerns, the funding source was revised. The new funding sources are the 2024 and 2025 fiscal budgets, and the adjusted cost was reduced from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion).
Deputy Minister of Finance Julapan Amornvivat assured that budget cuts would not affect the number of participants. The Digital Wallet committee has also taken steps to exclude recipients with a history of fraud.
Restrictions And Exclusions
The initiative will have specific exclusions, including:
- Goods: oil
- Services: certain types of services
- Purchases: online purchases
The Commerce Ministry is expected to finalize and announce these exclusions soon.
Economic Context And Future Steps
Thailand's economy has been facing challenges, with the World Bank projecting a GDP growth of only 2.4% for 2024.
Initially, the program aimed to cover all Thai citizens aged 16 and above. However, it was later revised to specifically target lower-income citizens. The criteria used are an annual income not exceeding 840,000 baht ($23,000) and savings in financial institutions not totaling more than 500,000 baht ($13,700).
The government hopes this digital handout will catalyze economic revival, boosting local businesses and increasing consumer spending.
Thailand's $13.8 billion Digital Wallet program is a bold initiative to revitalize the country's economy by distributing digital cash to its citizens. With a focus on supporting local businesses and increasing consumer spending, the government remains hopeful that this program will pave the way for a brighter economic future.
