14.5 Million Set to Benefit from Initial Phase of Government Stimulus Program as Second Phase Timeline Remains Unclear
PUBLISHED : 13 Sep 2024 at 20:07
The government is set to launch a significant stimulus program starting September 25, targeting 14.5 million eligible individuals in need. This initiative aims to boost economic growth to 3% this year, as stated by the Ministry of Finance.
The first recipients include 12.4 million state welfare cardholders and 2.1 million disabled individuals, each entitled to receive a one-time payment of 10,000 baht. Lavaron Sangsnit, the ministry’s permanent secretary, confirmed the details on Friday.
Originally, the “digital wallet” initiative aimed to cover up to 50 million people, but funding challenges have restricted its scope. So far, 30 million individuals have registered for the handouts, with the government yet to announce a timeline for the subsequent phase.
The distribution process will commence on September 25, leveraging state welfare and disability cards via PromptPay, linked to recipients’ national ID numbers.
Payments to disabled individuals will be initiated on September 25, while state welfare cardholders will receive their funds on a staggered basis: September 25 for those with card numbers ending in 0; September 26 for holders with numbers ending in 1, 2, and 3; September 27 for numbers ending in 4, 5, 6, and 7; and finally, September 30 for those with numbers ending in 8 and 9.
This staggered distribution method aims to prevent disruptions to salary payments in the banking system, allowing for daily allocations ranging from 4 to 5 million recipients.
Over 11 million state welfare cardholders have successfully linked their ID numbers to PromptPay, leaving more than 1 million individuals yet to complete this process.
Disabled individuals will continue to receive payments through their existing monthly state assistance system.
Mr. Lavaron emphasized the importance of linking national ID numbers to PromptPay by the year’s end to ensure eligibility for the 10,000-baht handout, cautioning that failure to do so may disqualify them from receiving payment this year.
Future Developments of the Payment Platform
Regarding plans for a second phase, Mr. Lavaron mentioned that its initiation will depend on the readiness of the payment platform, managed by the Digital Government Development Agency. He highlighted the digital handout as a critical infrastructure element for Thailand’s future digital economy.
Once the system is finalized, a subsequent phase is anticipated, with a budget of 187 billion baht earmarked for fiscal year 2025. After distributing funds to vulnerable groups, it’s expected that the urgency to distribute additional funds may lessen, providing more time for the enhancement of the payment system.
Concerns have surfaced among financial institutions regarding the rushed implementation of the platform, which may compromise adequate testing and confidence in the system.
Mr. Lavaron is optimistic that the initial phase payments, in conjunction with funds from Vayupak Fund 1, will stimulate economic activity in the final quarter of this year, supporting the government’s target of reaching 3% growth. The National Economic and Social Development Council projects a GDP growth rate of approximately 2.5% for this year.
