Prime Minister Srettha Thavisin's plan to distribute 10,000 baht ($276) in digital money to the public on February 1 has been delayed, but will still take place in Q1 next year.
The Thai government's plan to distribute 10,000 baht ($276) in digital money to the public on February 1 has been delayed, according to Deputy Finance Minister Julapun Amornvivat.
According to Amornvivat, the postponement is necessary as more time is required to develop a secure system for the distribution. However, the Deputy Finance Minister assured that the handout will still take place within the first quarter of 2024.
The digital money handout, which was originally planned as a vital component of the Pheu Thai Party's economic recovery strategy, promises to provide financial help to every Thai citizen aged 16 and above.
Prime Minister Srettha Thavisin anticipates that the handout's increased consumption expenditure would contribute to a 5% expansion in the economy next year, with the scheme partially supported by higher tax revenue.
However, concerns have been raised regarding the potential risks associated with the program, particularly given the country's existing public debt levels.
The program's estimated cost is approximately 548 billion baht ($15 billion), and discussions are still ongoing about the source of the funds.
Former senator Rosana Rositrakul has filed a petition to examine the digital baht handout scheme, allegeding that it is potentially harmful.
Rositrakul said:
“The 10,000-baht digital wallet scheme can be compared to the rice-pledging scheme of the Yingluck Shinawatra government which resulted in several cabinet ministers being jailed.”
Some economists, including former Bank of Thailand governors, have also expressed reservations about the scheme's impact on the economy.
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