Thailand is about to roll out an initially controversial $13.8 billion digital money program to boost its sluggish economy. Prime Minister Srettha Thavisin announced that eligible companies and individuals could register for the program, called the ‘Digital Wallet’, from August 1. according to AP News.
The plan, originally announced in April, aims to distribute 10,000 baht (about $275) to 50 million Thai citizens, which previously totaled about $13.8 billion. However, Deputy Finance Minister Julapan Amornvivat said during a press conference on July 15 declared costs had fallen to $12.4 billion because 10% of users had not used previous handouts. Like Bloomberg reportedthis digital currency is intended to be spent at local branches for six months.
The handouts are intended for adults who earn no more than 70,000 baht ($1,890) per month and have less than 500,000 baht ($13,500) in their bank accounts. AP News confirmed that the program will be funded through a combination of the 2024 and 2025 budgets, with some funding from the State Bank of Agriculture and agricultural cooperatives.
Beneficiaries must spend the money within their local community, and purchases of alcohol, cigarettes, fuel, services and online transactions are prohibited. The World Bank projects that of Thailand GDP growth will rise from 1.9 percent in 2023 to 2.4 percent in 2024.
Despite the government’s optimism, the program has faced criticism from economists who doubt its effectiveness in promoting sustainable economic growth. Concerns have been raised about the impact of the program on the national debt and budget deficit. Like Bloomberg notedthe plan has been met with skepticism about its long-term benefits.
The implementation of the Digital Wallet program marks an important economic policy step for Thailand, which has been struggling with slow growth.
