In a vibrant rally at the Pheu Thai Party headquarters in Bangkok, a woman proudly holds up a sign supporting the government’s ambitious 10,000-baht digital wallet scheme. Taken last October, the photograph captures the enthusiasm and anticipation enveloping this bold initiative. (Photo: Somchai Poomlard)
This past Friday, the government reaffirmed its commitment to allocate 43 billion baht from the central budget to partially fund the digital wallet program—a move they insist will not compromise their efforts to alleviate the struggles of the Thai people. Prime Minister’s Office Minister Chakkraphong Saengmanee, who oversees the Budget Bureau, addressed rising concerns head-on. The hefty sum, anticipated to balloon to at least 450 billion baht, won’t, according to Mr. Chakkraphong, strip the government of its ability to provide for those in need.
Voiced by Sirikanya Tansakul, deputy leader of the main opposition Move Forward Party, these concerns came to a head during a heated exchange with Prime Minister Srettha Thavisin on Thursday. The debate zeroed in on the digital wallet and the broader economic strategies of the government.
Mr. Chakkraphong assured the public that a meticulous review of the budget and previous central fund expenditures was conducted before making such a crucial decision. He highlighted that the 43 billion baht allocation represents roughly 40% of the central fund, which stands at a robust 99.6 billion baht. This careful consideration involved consultations with the secretary-general of the Council of State—the government’s legal guru, greenlighting the move.
Determined to clear any misconceptions, Mr. Chakkraphong stressed that the government’s plan was not to earmark the central fund exclusively for the digital wallet initiative. Instead, they’re geared up to meticulously manage the resources and invigorate the economy. The digital wallet scheme is poised to roll out in the fourth quarter, targeting a whopping 50 million Thais aged 16 and above. Each will receive a generous 10,000 baht to spend within their registered districts—a burst of economic dynamism at the grassroots level.
However, the scheme isn’t without its critics. Distinguished economists and former central bank governors have voiced their skepticism, branding the program as fiscally reckless. The brainchild of the Pheu Thai Party, this venture is a cornerstone of their 2023 election manifesto.
Adding to the discourse, Deputy Finance Minister Paopoom Rojanasakul recently clarified that certain high-import items wouldn’t be covered under the digital wallet scheme. This includes electrical appliances and electronic gadgets like mobile phones. The rationale? To ensure the spending power remains firmly rooted in Thailand, rather than leaking offshore.
All eyes are now set on the upcoming Monday meeting, where final decisions regarding the handout will be hashed out. Prime Minister Srettha Thavisin is at the helm of the digital wallet policy committee and is slated to unveil all the intricate details to the public on July 24. The nation waits with bated breath, eager to see how this audacious plan will shape their economic landscape.
I think this is a great move by the Thai government! This digital wallet scheme could really boost local economies and support families in need.
You’re missing the bigger picture, Anne. This could lead to serious inflation and strain the country’s fiscal stability.
Inflation is a risk, but if managed properly, this could help many struggling citizens.
Exactly, Tanya. Every policy has its risks, but the potential benefits outweigh them in this case.
How can they assure this won’t be a waste of money? People might just waste it on unnecessary items.
Deputy Finance Minister Paopoom already said high-import items won’t be covered, so the money will mostly stay in Thailand.
Even if it’s spent on small luxuries, it still injects money into the economy. Isn’t that the whole point?
Why not just give people cash directly instead of this complicated digital wallet system?
It’s about control and ensuring the money is used within local communities.
This plan could seriously deplete their central fund. It seems irresponsible to allocate 40% of it.
I support this initiative. It seems like a strategic move to stimulate the economy from the ground up.
But what if it backfires? It could lead to a bigger financial crisis.
This could be a game-changing moment for Thailand. A well-planned rollout can really make a difference.
There’s no guarantee that the money will be used wisely. Education on financial management should accompany this scheme.
Good point, Yesha. Financial literacy should be part of the plan to ensure long-term benefits.
Agreed. Alongside the rollout, there should be workshops or resources to educate people on smart spending.
I’m curious how they’re going to manage and track the spending. Seems logistically challenging.
Digital wallets can provide detailed tracking data, which could help monitor the spending effectively.
Using the central budget like this is a gamble. Could go either way.
Giving a lump sum of money might encourage wasteful spending instead of thoughtful consumption.
But not giving anything leaves people struggling. Sometimes bold moves are necessary.
How will retailers handle the influx of digital wallet payments? Some might not even accept digital forms of payment.
I think people are overthinking the risks. The intention is good and that’s what matters in the end.
Intentions alone don’t ensure success. Execution and planning are key.
Thailand needs something to stimulate its economy, and this could be the answer.
Isn’t this just a way for the Pheu Thai Party to gain more votes by making grand promises?
Political strategies aside, if it helps people, it’s still a win.
The focus should be on long-term sustainable solutions, not quick fixes that could backfire.