27-9-2024 (BANGKOK) The Thai government has stood firm on its 10,000-baht digital handout scheme, affirming recipients’ right to use the funds as they see fit, including debt repayment. This declaration comes in response to growing concerns about the scheme’s potential misuse and its impact on personal debt levels.
Deputy Prime Minister Phumtham Wechayachai addressed the issue on Thursday, stating, “They can use the money [to clear their debts]. They have the right to use the money to solve their problems.” Mr Phumtham’s comments followed reports that many eligible recipients planned to use the handout to settle outstanding debts.
The digital handout scheme, which officially launched on Wednesday, is part of the government’s broader economic stimulus package. The first phase prioritises distribution to 12.4 million state welfare cardholders and 2.1 million disability cardholders through the PromptPay system.
However, the rollout has not been without challenges. Only about 3.1 million of the 14.5 million eligible recipients received their handouts on the first day due to limitations in the PromptPay system. The government has urged remaining welfare cardholders to link their national ID numbers to PromptPay by year-end to ensure they receive the funds.
Amid these technical hurdles, concerns have emerged about predatory lending practices. Deputy Prime Minister and Interior Minister Anutin Charnvirakul issued a stern warning to lenders, stating, “It is illegal for lenders to intimidate debtors.” This caution came in response to reports of loan sharks queuing alongside recipients at ATMs on the scheme’s first day.
Law enforcement has also been mobilised to address this issue. Assistant National Police Chief, Police Lieutenant General Akkaradet Pimonsri, has ordered nationwide action against loan sharks attempting to intimidate handout recipients.
Despite these challenges and criticisms, including accusations of vote-buying, the government remains committed to the scheme. Mr Phumtham dismissed these concerns, emphasising, “We’re not concerned about that. We’re focusing on tackling people’s problems.”
