Government Expedited 145 Billion Baht ‘Digital Wallet’ Initiative to Support Vulnerable Populations
PUBLISHED: 9 Sep 2024 at 15:32
The Thai government is set to roll out 145 billion baht from its “digital wallet” initiative sooner than planned to aid vulnerable groups, according to a deputy finance minister. This action underscores the urgent need for short-term economic revitalization.
During a budget discussion in the Senate, the deputy minister revealed that the government has allocated a total of 450 billion baht for the flagship program, which aims to boost local economic activity by providing 10,000 baht to 50 million eligible Thais.
Originally planned for the last quarter of the year, this measure is crucial for revitalizing Thailand’s economy, which saw a growth rate of just 2.3% in the second quarter.
A recent change in government leadership, following the unexpected ousting of the former premier, has created uncertainty regarding the timeline for implementing promised stimulus measures.
Part of the financial assistance will now be distributed in cash, as articulated by the new prime minister and her associates.
The finance official noted that over 32 million individuals have registered for the program, which specifically targets vulnerable groups, although those without smartphones will not be eligible, as funds are distributed through a digital application.
Details regarding the initial payments, anticipated in late September from the 2024 budget and other revenue sources, remain unclear regarding whether they will be disbursed in cash.
This announcement follows the new prime minister’s commitment to jumpstarting the economy immediately and adhering to the previous government’s policy framework.
In a policy statement due to be presented to parliament later this week, she outlines her government’s commitment to economic stimulus.
Despite criticisms from economists, including former central bank governors labeling the program as fiscally irresponsible, the government continues to advocate for its necessity, even amid challenges in securing funding. The central bank projects economic growth of just 2.6% this year, a slight improvement from 1.9% in 2023, but significantly lower than many of its regional counterparts.
