In the heart of bustling Bangkok, food vendors eagerly lined up to register for the much-anticipated digital money handout scheme in Phra Nakhon district on August 1. The atmosphere was abuzz with a blend of hope and skepticism as vendors pondered over the new initiative. (Photo: Apichart Jinakul)
The move comes as part of an ambitious supplementary bill aiming to bolster the budget for the current fiscal year by a hefty 122 billion baht, partially to fund the government’s digital wallet handout scheme. This bill cruised through all three readings in the Upper House on Tuesday with a notable vote. Out of the total, 139 senators were in favor, 38 against, and 18 chose to abstain.
However, the journey to approval was not without its share of controversies. In the debate preceding Tuesday’s decisive vote, a number of senators voiced their reservations about the efficacy of the digital handout scheme as touted by the government.
Bangkok Senator Norasate Prachyakorn articulated his apprehensions vividly. He expressed doubts about the government’s ambitious goal of driving the GDP up by an additional 1.8% through the digital handout, a mammoth task demanding nearly 500 billion baht in funding. The skepticism wasn’t secluded to Prachyakorn. Senators Bunchan Nuansai and Premsak Piayura echoed similar concerns, speculating that rather than a genuine strategy to uplift the economy, the handout might merely be a tactic to garner votes for the upcoming general election.
In an intriguing twist, Daeng Kongma, once a pork vendor in a bustling fresh market in Amnat Charoen before her tenure as a senator, provided a ground-level perspective. She argued that giving out the 10,000-baht handout in cash would have a more immediate stimulative effect on the grassroots economy by encouraging direct spending. In her view, digital currency poses a complex hurdle for many, potentially dampening the intended economic boost.
Despite these concerns, Prime Minister Srettha Thavisin took to the floor of the Upper House with a compelling defense of the 122-billion-baht supplementary bill. He underscored the pressing need to inject capital to invigorate and fortify the economy, stressing that waiting until the 2025 fiscal budget would be impractical given the current economic landscape.
Elaborating on the source of the supplementary funds, Thavisin disclosed that about 10 billion baht would be sourced from anticipated tax and other revenue streams. The remainder, however, will necessitate borrowing. He painted a rather grim picture of Thailand’s economic health, marked by sluggish growth, high household and corporate debt, and an extremely volatile global economic environment. This precarious situation, he contended, mandated urgent financial intervention.
To assure his critics and the public, Thavisin pledged that the government would adhere strictly to state fiscal and financial discipline rules while implementing the financial measures.
As the dust settles on this pivotal legislative decision, the nation watches with bated breath. Will the digital wallet handout scheme bring the economic revival it promises, or will it merely lead to further fiscal strains? Only time will tell. For now, the streets of Phra Nakhon are a testament to a community standing at the precipice of change, with food vendors and citizens alike hoping that this digital lifeline will bring the economic nourishment they so desperately need.
I think this digital money handout scheme is just a way for the government to buy votes. They should focus on more sustainable economic policies.
I don’t totally disagree, Joe. Handouts won’t solve the core issues like high debt and sluggish growth. Real reforms are needed.
But isn’t some immediate relief necessary too? People need help now, not in a few years when reforms might start bearing fruit.
Sustainable policies would be great but maybe this handout can be seen as a temporary fix to address immediate needs? People are really struggling.
10,000 baht in cash would indeed stimulate local economies faster. Digital currency is just adding complexity for the sake of modernity.
Can’t believe more than half of the Senate went with this. Are they not aware of the long-term financial repercussions?
Typical politicians, they think short-term. They’re more focused on the next election cycle than the country’s financial health in a decade.
The economic precariousness can’t be ignored though. The PM’s points about household and corporate debt are real and pressing concerns.
Source of funds being largely borrowed is a huge red flag. Eventually, this debt will become another problem to solve!
Completely agree! Borrowing more to fix borrowing problems sounds like a recipe for disaster.
But sometimes you need to borrow to invest in growth. The question is whether this digital handout will actually catalyze that growth.
Senator Kongma’s point about cash handouts is spot on. Digital currency is just not practical for many grassroots users.
Exactly! Even educated people sometimes struggle with digital platforms, let alone those who’ve never dealt with them before.
It’s 2023, digital should be the norm. People need to adapt, and this can be a push towards that.
These kinds of schemes can be great if implemented well, but I worry about corruption and mismanagement.
Every policy has teething problems. We need to at least give it a chance before dismissing it completely.
Following state fiscal and financial discipline rules sounds good on paper but the real world application always seems to fall short.
How can we even know if the pledged funds will reach those who need them most? There should be more transparency.
Transparency is key, but let’s not kid ourselves. How often have we seen complete transparency in government operations?
Can’t help but be a bit cynical. Is this just a show to create an illusion of action?
People need immediate support, true, but why complicate with digital currency? Traditional cash could be faster and simpler.
It’s high time we embrace modern solutions though. Digital currency represents the future, and there’s no harm in getting ahead.
Let’s not forget the big picture. High borrowing might be risky, but economic stagnation is a ticking time bomb too.
Totally right, Alia. This might be a risky move, but doing nothing is also not an option. The economy needs a boost.
Well, let’s hope this is the boost we need without leading us into deeper financial holes.
Digital handouts and traditional cash serve different purposes. Combining both could be the way forward.
Interesting point, combining the two could address multiple issues at once. Diversity in approach might be key here.
Exactly, why not a hybrid model? It could take the best of both worlds.
Realistically, changing the system halfway through might be operationally challenging though. Bureaucracies are not nimble.
Innovation often meets resistance, but if it’s for the greater good, it’s worth the struggle.
Let’s hope they have a foolproof plan. This economic experiment will either be a huge success or a colossal failure.