Prime Minister Paetongtarn Shinawatra, center, and cabinet ministers at Government House last Saturday. (Photo: Nutthawat Wichieanbut)
Prime Minister Paetongtarn Shinawatra expressed her unwavering confidence that the government’s sweeping policies, set to be unveiled before Parliament on Thursday, will ignite an economic whirlwind, turbocharging the nation’s financial landscape. The highlight is the ambitious digital wallet handout program poised to make significant waves.
In an eagerly anticipated address to Parliament on Thursday and Friday, Ms. Paetongtarn will unveil the government’s strategic vision. Under constitutional mandates, the government must declare its agenda before initiating work. Paetongtarn will paint a broad picture of the policies, while her cabinet ministers dive into the intricate details of their respective domains.
“The digital wallet program will come into sharp focus following the policy statement,” Ms. Paetongtarn assured. “My role will be to sketch the overall strategy, while the finance minister delves into the specifics. The goal of the digital wallet initiative is to galvanize the economy. Should further stimulus be required, we stand ready to pivot our economy into the digital age,” she confidently stated.
“This digital wallet isn’t our only ace,” she noted with a smile. “We’ve strapped ourselves with a quiver of economic stimulus policies. But this one, this digital wallet, it’s our rapid-response weapon.” She brushed off the naysayers skeptical about segmenting the 10,000-baht payment into two tranches.
“Installing a cutting-edge digital system takes time, but people’s needs are immediate. Therefore, we must adapt to expedite their aid,” she emphasized. “The phased payments, coupled with other economic stimulus measures, will provide an immediate and much-needed lift to our economy,” Paetongtarn explained.
The government has earmarked a whopping 145 billion baht for its digital wallet handout program, targeting vulnerable groups and state welfare cardholders starting September 20. Those already enrolled through the Tang Rat application can expect an initial payout of 5,000 baht by the year’s end if the digital system isn’t up and running in time, with the remaining payment distributed in digital currency next year.
This initiative serves as the linchpin of the government’s master plan to catalyze Southeast Asia’s second-largest economy, which posted a 2.3% growth in the second quarter. The recent governmental shuffle, resulting from the court’s dismissal of former premier Srettha Thavisin, cast a shadow of uncertainty over the rollout of the promised stimulus measures. Paetongtarn, stepping into her new role, confirmed last week that part of the handout would be in cash, diffusing some of the suspense.
Deputy Prime Minister and Defence Minister Phumtham Wechayachai validated that the digital wallet handout scheme is slated for cabinet approval on September 17. According to the government’s updated figures, the 450 billion baht needed for the handout scheme will be sourced from the 2024 and 2025 fiscal budgets. Approximately 140 billion baht will come from the 2024 budget—with 23 billion baht from the central budget and 122 billion baht from an additional budget.
A supplementary bill seeking to augment the current fiscal year’s budget by 122 billion baht to fund the scheme has already passed through Parliament. Moving forward, around 187 billion baht will be drawn from the 2025 central budget, leaving a funding gap of about 117 billion baht for the 450 billion baht scheme.
Political science experts weighed in on this ambitious agenda. Wanwichit Boonprong from Rangsit University remarked that the Paetongarn government’s policy largely mirrors the previous administration’s blueprint. He noted that many policies seemed inspired by former Prime Minister Thaksin Shinawatra’s recent forum discussions.
Olarn Thinbangtieo of Burapha University observed that some government initiatives were conspicuously absent from their election manifesto, like the proposal for an entertainment complex featuring a casino. “It seems many of these policies are reminiscent of Thaksin’s ideas, suggesting his influence on the current government,” Mr. Olarn stated.
This digital wallet program sounds like a disaster waiting to happen. Throwing money at people isn’t a sustainable solution for economic growth.
Disagree. This is a step towards embracing digital currency. The future is digital, and Thailand needs to keep up.
But isn’t it risky to depend so heavily on digital infrastructure that’s not even fully in place yet?
Tech is always evolving. Nothing ventured, nothing gained. They can fix the issues as they arise.
I agree with Paetongtarn. Immediate aid is crucial for vulnerable groups. They don’t have the luxury of waiting.
Okay, but what happens when the initial aid runs out? Are we just going to keep printing money?
Somsak K, you’re right. Immediate aid can stimulate consumer spending, which boosts businesses.
People are missing the bigger picture. The whole economy can benefit if the digital wallet is implemented well.
Interesting to see how much Thaksin’s ideas are influencing his daughter. Is this just old wine in a new bottle?
Probably. Still, Thaksin did have some successful policies. Maybe it’s not a bad thing.
I just worry about recycling old policies when innovation might be needed right now.
Politics is all about borrowing ideas. What’s more important is how they implement them.
Finally, a leader willing to bring tech to the forefront. Kudos to Paetongtarn for this bold move.
Why the emphasis on digital wallets? Seems like an unnecessary complication.
Because it’s modern and efficient! Paper money is so last century.
There’s modern, and then there’s reckless. Slow and steady might be smarter in this case.
This initiative is clearly aimed at short-term benefits. What about the long-term ramifications?
Good point. Long-term economic stability should be the real goal.
Jane Doe Every government does short-term stuff for immediate wins. It’s the reality of politics.
True, but it feels like a gamble that could backfire. Especially with their budget gaps.
I appreciate the focus on vulnerable groups, but the funding gap is alarming. Where is this additional money going to come from?
Confidence in economic policies is crucial. Paetongtarn is showing strong leadership.
Just another attempt to buy votes. Seen it before, will see it again.
The fact that Thaksin’s influence is so clear does raise questions about originality in policymaking.
Is anyone else worried about the reliance on a digital system we aren’t sure will be ready?
Such a massive budget allocation for a digital wallet. Could this money have been better spent elsewhere?
The phased payment system is actually quite smart. It ensures that aid reaches those in need while they finalize the tech.
I’m more interested in how local businesses will adapt to this new digital economy.
Plenty of skepticism, but we should at least give it a chance and see how it pans out.
With an uncertain digital infrastructure, the phased rollout might end up a mess.
Give it some time. No new system is perfect at rollout.
An economic whirlwind? More like a storm that could wreck everything. Bold claims are easy to make.
At least she’s showing some initiative. Better than endless bureaucracy and inaction.