In an anticipated announcement closing weeks of conjecture, Prime Minister Srettha Thavisin revealed the inception of the government’s digital wallet scheme, which is slated to roll out in May next year. Approximately 50 million individuals aged 16 and over, with earnings less than 70,000 baht per month and holding less than 500,000 baht in bank deposits, are poised to earn a leg-up of a 10,000-baht handout. The prime minister made this landmark disclosure at the revered Government House.
Designed to stimulate the economy, the digital wallet initiative, which necessitates a 500 billion baht loan, will be extended to Thai citizens meeting specific qualifications, Prime Minister Srettha Thavisin articulated on Friday. The prerequisites dictate individual earnings to be below 70,000 baht per month with bank deposits under 500,000 baht. The altered considerations suggest 50 million people being qualified, a reduction from the original 56 million target audience.
No leniencies have been envisaged for earning individuals exceeding 70,000 baht a month with less than 500,000 baht in bank deposits. A similar stance is upheld for individuals earning a monthly income less than 70,000 baht with over 500,000 baht bank deposits. Mr. Srettha was precise in his elucidation during the press conference post-chairs the meeting of the digital wallet policy committee.
Citing a mere 1.9% annual growth of Thailand’s GDP over the past decade and a sharp increase in household debt from 76% in 2012 to a staggering 91.6% this year, he stressed on the need for a substantial economic uplift. He further emphasized the declination in the manufacturing sector output resulting in wide-spread layoffs, thus initiating a detrimental cycle of lesser earnings and buying capacity that inevitably spirals towards an economic recession.
In a resolute attempt to boost the economy, the government plans to pump in 600 billion baht – 500 billion through the digital wallet program accompanied by a 100-billion-baht fund aimed at enhancing the country’s economic potential. The cash flow influx into the economy via the digital wallet policy endeavors to increase spending post-launch by six months, despite a three-month delay in handout commencement from the initially intended date.
A new 100-billion-baht fund is speculated to enhance the nation’s competitiveness across various fields, potentially including investments in novel technologies and human resource development. Addressing the essentiality of attracting highly competent individuals from diverse fields to contribute to economic growth, Mr. Srettha also emphasized that the digital money handout scheme is not a welfare solution for needy individuals but rather an economic arousal tool via government-partnered spending.
For the funding source of the program, a pragmatic solution, as explained by Mr. Srettha, would be a bill proposition seeking a special loan of 500 billion baht. This draft bill is intended to be sent to the Council of State within the year, ensuring it aligns with all existing laws before being forwarded to parliament early next year, ensuring that the program can commence in May according to Section 53 of the State Fiscal and Financial Discipline Act of 2018, he stated.
The other 100 billion baht, reserved for economic projects, will be sourced from state budgets, he added. Despite the looming risk of the Constitutional Court ruling against the bill due to a lack of urgency, deputy leader of the opposition Move Forward Party, Sirikanya Tansakun commented that the government is left with no other alternatives.
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