Deputy Finance Minister Julapun Amornvivat recently took the stage at a vibrant rally held in support of the digital wallet initiative at the Pheu Thai Party headquarters in Bangkok last October. Standing nearby was Paopoom Rojanasakul, another deputy finance minister, attentively observing the proceedings. (Photo credit: Somchai Poomlard)
The Thai government is brimming with confidence about their financial prowess, assuring citizens that they have enough funds to bankroll the massive 500-billion-baht digital wallet program. Deputy Finance Minister Julapun Amornvivat unveiled this optimistic outlook during a press conference on Wednesday. Contrary to earlier plans, they might not even need to dip into the reserves of a state-owned bank for additional financial support.
As part of its strategic planning, the Pheu Thai government has allocated a whopping 450 billion baht from the upcoming 2024 and 2025 fiscal budgets to back this initiative. Thus, the need to rely on the Bank for Agriculture and Agricultural Cooperatives (BAAC) may be dissipating. “I confirm that this project is moving ahead. The money will reach the people in the fourth quarter and will benefit them,” asserted Mr. Julapun, his voice resonating with unwavering assurance.
However, Mr. Julapun also hinted at a realistic forecast where the entire handout might not be utilized. Reflecting on previous government initiatives, he observed that less than 90% of the target populace typically registers for these programs.
So, what’s the buzz about this digital wallet? Essentially, it’s a tantalizing giveaway where each of the 50 million eligible Thais receives 10,000 baht to splurge within their local communities. Initially scheduled to kick off in February, the rollout was bumped to May, and then again to the fourth quarter of this year amid questions about funding logistics.
This week, the government hinted that on July 24th, Prime Minister Srettha Thavisin is set to make a grand announcement disclosing the much-anticipated start date, registration process, and other essential details.
Despite the excitement, not everyone is singing praises. The plan has faced intense scrutiny from economists and a pair of former central bank governors who have branded the initiative as fiscally reckless. They argue that such a bold program could strain the country’s finances.
Staying firm in their stance, the government reiterates its intention to finance the policy from the 2024 and 2025 budgets, leveraging funds from the BAAC. Nonetheless, legal questions about getting a loan from the BAAC linger. To clear the air, the government eyeing the Council of State, its legal advisory body, for guidance. Yet, as Pakorn Nilprapunt, the council’s secretary-general noted, a formal request for an opinion remains pending.
I think this Digital Wallet initiative is a fantastic idea! It will boost local spending and help small businesses.
Do you really believe that? The government is just printing more money. This will lead to inflation eventually!
That’s a fair point, but other countries have done similar things with positive results. Balance is key, right?
We are not ‘other countries.’ Thailand’s economy operates differently, and there’s no guarantee it’ll work the same way.
I’m cautiously optimistic. This could be a lifesaver for many struggling families, but we need more transparency.
What are they thinking?! 500 billion baht is a huge amount and could lead to severe economic consequences. Wise up, people!
I agree, Sophia. The financial strain could outdo the benefits if this isn’t executed perfectly.
Exactly. And when has a government ever executed anything perfectly?
Many people rely on government aid to make ends meet. This initiative could make a real difference in their lives.
It’s not just about helping people. We need to consider long-term economic stability too.
It’s amazing how politicians can assure us everything is fine when evidence shows otherwise.
I think it’s a populist move. They want to win votes for the next election.
Honestly, I don’t trust the Pheu Thai Party. This seems like another way to distract us from their other shortcomings.
Totally, Nate! They are trying to gain popularity without considering the repercussions.
Can we please have more details? The execution plan and transparency are crucial here.
There is still much ambiguity around the execution. I doubt they have a concrete plan in place.
It’s technically possible to manage such a huge budgetary task, but it requires impeccable planning and strict checks.
Exactly! This whole plan sounds way too ambitious without proper structures.
I remember when they announced similar programs a few years ago. The money didn’t reach everyone. What’s different this time?
As they mentioned, this time there’s more substantial backing from the fiscal budgets. So hopefully, it’ll be more efficient.
Will this focus only on citizens, or will it help immigrants and refugees too?
Good question, Emily. From what they’ve said, it appears to be for citizens only. But including immigrants could have widespread benefits.
Economists are right to be concerned. This can mess up our financial health big time.
People always love free money until they have to deal with the long-term consequences of it.
Exactly. It’s like a sugar rush. Feels great now, but what about later?
If done correctly, this could serve as a great experiment for other countries considering similar moves.
Experiment? Our economy isn’t a lab rat. We need solid policies, not experiments!
Wait until they start raising taxes to cover this. That’s when people will really feel the burden.
This could be revolutionary if managed properly! I’m excited to see the impact on local communities.
I’ll believe it when I see it. Until then, this is just political fluff.
True! Let’s hope they have something substantial to back their big promises.