Thailand’s Prime Minister disclosed on Monday that starting August, eligible businesses and individuals can enroll in a controversial digital cash handout program aimed at revitalizing the country’s sluggish economy. The initiative, named the “Digital Wallet,” plans to distribute 10,000 baht (approximately $275) in digital currency to 50 million citizens for expenditure at local businesses.
Prime Minister Srettha Thavisin confirmed via the social platform X that registration will commence on August 1, emphasizing preparations for the program’s smooth implementation. The “Digital Wallet” was a pivotal campaign pledge of the ruling Pheu Thai party prior to the last general election, with promises that it would act as an “economic tornado” stimulating GDP growth by 1.2 to 1.6 percentage points. Despite these assertions, economists have critiqued the program’s effectiveness compared to alternative economic measures.
Financially, the initiative faced obstacles, initially relying on the state Bank for Agriculture and Agricultural Cooperatives for funding, which was later adjusted due to concerns raised by financial experts. Funding adjustments led to the inclusion of the project in the 2024 and 2025 fiscal budgets, with Deputy Finance Minister Julapan Amornvivat explaining in a press conference on Monday that cost estimates had reduced from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion). He assured that all 50 million anticipated beneficiaries would still participate, citing past handouts where only up to 90% of eligible individuals utilized the funds.
Julapan noted that the Digital Wallet committee had agreed to exclude thousands of shop owners and past fraud offenders from participation. Specific exclusions, including certain goods and services like oil and online purchases, are pending final approval by the Cabinet, managed by the Commerce Ministry.
Thailand’s economic challenges were underscored by recent projections from the World Bank’s Thailand Economic Monitor, predicting a modest GDP growth of 2.4% for 2024. Initially proposed for all Thais aged 16 and above, the Digital Wallet payments were restricted to lower-income individuals, defined as those earning less than 840,000 baht annually with savings under 500,000 baht in financial institutions.
The announcement was accompanied by insights from key officials and financial experts involved in shaping the program’s implementation and addressing public concerns.
