Thailand Announces $13.8 Billion 'Digital Wallet' Stimulus Plan to Revive Economy

By Thea Felicity

Jul 15, 2024 10:12 AM EDT

Thailand Announces $13.8 Billion 'Digital Wallet' Stimulus Plan to Revive Economy — (Photo : Lauren DeCicca/Getty Images)

Pheu Thai Party’s prime ministerial candidate Srettha Thavisin greets the press while the Prime Ministerial vote in Parliament is being held at Pheu Thai Party's headquarters on August 22, 2023 in Bangkok, Thailand. Self-exiled former prime minister Thaksin Shinawatra made his return to Thailand earlier today, as parliament commenced a vote on the country’s next Prime Minister after nearly three months of political deadlock.

Thailand's Prime Minister, Srettha Thavisin, announced a controversial $13.8 billion digital cash handout program aimed at reviving the country's economy.

The initiative, known as the "Digital Wallet," AP News reported that it will distribute 10,000 baht (approximately $275) in digital currency to 50 million eligible citizens, allowing them to stimulate local businesses.

Originally proposed for all Thai citizens aged 16 and above, eligibility was later narrowed to lower-income groups, defined by specific income and savings thresholds, reflecting efforts to target those most in need of financial support.

Starting in August, Thailand will launch the Digital Wallet stimulus program as planned by Thailand's ruling Pheu Thai party.

PM Thavisin emphasized that the program is expected to have a major economic effect. Specifically, he anticipates that increased consumer spending resulting from this initiative could contribute to boosting the country's GDP growth by between 1.2 and 1.6 percentage points.

Concerns on Thailand's Digital Wallet Stimulus Plan

Although the country's central banks has already revoked its opposition according to VCPost. economists have raised concerns about the program's effectiveness in creating sustainable economic growth.

Financing challenges initially stalled the initiative, prompting adjustments in budget allocations from the 2024 and 2025 fiscal years after estimated costs were reduced from 500 billion baht to 450 billion baht.

Julapan Amornvivat, Deputy Minister of Finance, assured the public during a recent press conference that the revised budgetary framework would encompass all intended beneficiaries, with measures in place to exclude individuals and businesses with histories of fraud from previous government programs.

However, the plan's scope includes limitations, such as yet-to-be-determined exclusions on certain goods, including oil, services, and online purchases.

The Commerce Ministry is set to finalize these details pending cabinet approval.