9-1-2024 (BANGKOK) Prime Minister Srettha Thavisin announced on Tuesday that Thailand’s ambitious plan to revitalize its economy through a $14.3-billion ‘digital wallet’ stimulus programme is set to move forward by May. Thavisin’s statement comes following a green light from the Office of the Council of State, an independent legal advisory panel to the government, which found no obstacles preventing the cabinet from borrowing to fund the scheme.
The focal point of the programme is to distribute 10,000 baht (approximately $285) to 50 million Thai citizens, encouraging them to spend within their local communities. This initiative was a key campaign promise of the ruling Pheu Thai party.
The Thai government aims to propel the growth of Southeast Asia’s second-largest economy to a minimum of 5 percent annually, with last year’s growth forecast standing at 2.4 percent.
However, the proposed handout has faced criticism from economists and some former central bank governors, who argue that it could lead to fiscal irresponsibility and fuel inflation.
In response to concerns, Prime Minister Srettha Thavisin, who also serves as the finance minister, stated that he would hold discussions with the country’s central bank governor on Wednesday, addressing matters related to the digital wallet and other economic considerations.
Earlier this week, Thavisin expressed criticism towards the Bank of Thailand’s interest rate hikes, asserting that they adversely impact small businesses during a period of low inflation. Despite any disagreements, the prime minister emphasized the importance of engaging in constructive conversations.
Thailand’s headline consumer price index (CPI) registered a 0.83 percent drop in December, marking the eighth consecutive month of decline.
