Thailand’s Digital Cash Handout Program
Thailand is introducing a new digital cash handout program worth $13.8 billion to boost its economy. Prime Minister Srettha Thavisin has announced that businesses and individuals can sign up for the program, known as the “Digital Wallet,” starting August 1.
The plan, which was first revealed in April, aims to give 10,000 baht (around $275) to 50 million Thai citizens, totaling $13.8 billion. However, Deputy Minister of Finance Julapan Amornvivat mentioned during a press conference that the costs have decreased to $12.4 billion, as 10% of recipients did not use previous handouts.
According to Bloomberg, the digital currency is designed to be spent at local businesses over a period of six months. The handouts are targeted towards 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 has confirmed that the program will be funded through a mix of sources.
Thailand’s Economic Growth Plan for 2024-2025
In an effort to stimulate economic growth, Thailand has allocated funding from the state-owned Bank for Agriculture and Agricultural Cooperatives for the 2024 and 2025 budgets. Beneficiaries of this funding are required to spend the money within their local communities, with strict prohibitions on purchases of alcohol, cigarettes, fuel, services, and online transactions.
The World Bank has projected that Thailand’s GDP growth will increase from 1.9 percent in 2023 to 2.4 percent in 2024. Despite the government’s optimism, some economists have raised concerns about the effectiveness of this program in promoting sustainable economic growth. There are worries about the program’s impact on public debt and the fiscal deficit.
Although the Digital Wallet scheme represents a significant economic policy shift for Thailand, aimed at addressing sluggish growth, there are doubts about its long-term benefits. Bloomberg has reported on skepticism surrounding the program’s potential to deliver lasting positive effects on the economy.
