Thailand is gearing up to launch a $13.8 billion digital cash handout program known as the “Digital Wallet” in an effort to boost its economy, which has been struggling in recent months. Prime Minister Srettha Thavisin made the announcement that businesses and individuals eligible for the program can start registering on August 1. Initially planned to distribute 10,000 baht (approximately $275) to 50 million Thai citizens, the costs of the program have now been reduced to $12.4 billion as some recipients have not utilized previous handouts.
The digital currency provided through the program is meant to be spent at local establishments over a period of six months. The target recipients are adults earning below 70,000 baht ($1,890) per month and with less than 500,000 baht ($13,500) in their bank accounts. The funding for the program will come from a combination of the 2024 and 2025 budgets, with some support from the state-owned Bank for Agriculture and Agricultural Cooperatives. Beneficiaries are required to spend the funds within their local communities, with certain expenditures like alcohol, cigarettes, fuel, services, and online transactions being prohibited.
Despite the government’s optimism about the program, there are concerns among economists regarding its effectiveness in promoting sustainable economic growth. Questions have been raised about the impact of the program on public debt and the fiscal deficit. Some experts are skeptical about the long-term benefits of the plan. However, the World Bank projects that Thailand’s GDP growth will increase from 1.9 percent in 2023 to 2.4 percent in 2024, indicating some positive outcomes from the initiative.
The implementation of the Digital Wallet scheme is a significant step in Thailand’s economic policy, as the country faces slow growth and the need for measures to stimulate the economy. This move highlights the government’s dedication to finding innovative solutions to tackle economic challenges. The program aims to inject much-needed funds into the economy and encourage spending at local businesses, which could have a positive impact on the overall economic outlook.
In conclusion, Thailand’s Digital Wallet program represents a bold and ambitious attempt to kickstart the country’s economy and provide financial support to its citizens during challenging times. While there are concerns about the program’s long-term impact and effectiveness, the government remains optimistic about its potential benefits. As the implementation of the scheme progresses, it will be crucial to monitor its outcomes and evaluate its success in achieving its objectives of boosting economic growth and supporting local businesses.
