11-7-2024 (BANGKOK) Thailand’s Prime Minister, Srettha Thavisin, has strongly advocated for the government’s flagship 500 billion baht ($13.8 billion) “digital wallet” handout scheme, asserting that it will spur job creation and stimulate economic growth in underdeveloped provinces and regions across the country. Addressing parliament on Thursday, Srettha emphasized that minor changes to the policy reflect public opinion, and the government plans to announce all the details on July 24.
“The capital injection will help spur manufacturing and create jobs,” Srettha told lawmakers, highlighting the scheme’s potential to revitalize the nation’s industrial sector and generate employment opportunities.
Under the proposed plan, approximately 50 million Thais would receive 10,000 baht (approximately $277) each to spend locally within a six-month period. The initiative, slated to commence in the fourth quarter, aims to boost domestic consumption and stimulate economic activity across Thailand’s diverse regions.
However, the government has faced challenges in securing funding sources for the ambitious program. During his speech, Srettha refrained from mentioning the total budget cost, but a deputy finance minister revealed on Wednesday that, based on past experience, the scheme could potentially cost around 450 billion baht, assuming a 90 percent take-up rate.
The digital wallet handout scheme has faced criticism from two former central bank governors and economists, who have labeled it as fiscally irresponsible. Nevertheless, the government has firmly rejected these arguments, maintaining its commitment to implementing the policy.
Opposition lawmaker Sirikanya Tansakul responded to the Prime Minister’s speech, stating, “You are able to diagnose the issues, but the solution is unclear,” highlighting the concerns surrounding the scheme’s practical implementation and long-term sustainability.
