Baht-ing for growth: Pheu Thai Party’s digital policy to boost Thai economy

The 10,000-baht digital currency policy handout by Pheu Thai is expected to inject an estimated 2 trillion baht into the country’s economy, according to Deputy Finance Minister Julapun Amornvivat. This initiative aims to contribute to a growth of at least 5% in the GDP by 2024.

Julapun Amornvivat stated that the economy would get a boost from the widespread use of digital wallets coupled with several other stimulus measures. These measures include increasing income through soft power and boosting the prices of agricultural products. He said…

“The main idea of the economic stimulus policy is that GDP can grow by at least 5%, which we expect in 2024.”

The minister further explained that the multiplier effect of these cash handouts would result in a circulation of money equivalent to a minimum of 2 trillion baht. The purchases of goods and services would subsequently generate an estimated 30 billion baht in value-added tax (VAT).

The project, which requires no registration, is expected to reduce disparities in people’s access to digital money. Users can simply download the new national wallet app to receive their share. High-security blockchain technology will drive the project, ensuring complete traceability. Eligibility conditions, such as age and spending parameters, can be set, as per Julapun, reported Bangkok Post.

Plans are in place to launch the policy in the first quarter of 2024. The digital wallet, valid for six months, can be used at all local shops and businesses within a 4-kilometre radius of users’ registered addresses. This is a strategic move to stimulate local economies and prevent income concentration in urban areas.

The digital currency, however, cannot be spent on cigarettes and alcohol, used to repay debts or transferred into fiat money, except for registered merchants under the VAT system.

The project, costing an estimated 560 billion baht, will be funded by the state budget. This is expected to cause an increase in the revenue collected for fiscal 2024 but will decrease certain welfare programmes, such as the state welfare card.

To access the 10,000-baht digital money, individuals will be required to download the accompanying app and link it to their ID card. For those without a smartphone, their 13-digit ID card number can be used for authentication.

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