Digital wallet scheme falls short of 45 million target, saves 100 billion baht

Online registrations for the government’s digital wallet handout scheme have recently closed, with only 36 million people signing up, falling short of the 45 million target. The Finance Ministry reported that this shortfall has resulted in a saving of 100 billion baht (US$3 billion) from the project’s budget.

When asked whether the lower registration numbers indicated a lack of public confidence in the scheme, Finance Permanent Secretary Lavaron Sangsnit did not respond.

Lavaron confirmed that the digital wallet programme, which closed registration yesterday, saw 36 million people sign up, well below the projected 45 million. He noted that the Finance Ministry will not extend the registration period, as the eligible individuals had one and a half months to register.

The government originally estimated that around 50 million people would be eligible for the 10,000-baht (US$300) digital wallet handout, based on criteria such as an annual income of no more than 840,000 baht (US$25,250), bank savings under 500,000 baht (US$15,030), and being at least 16 years old. However, the Finance Ministry anticipated that approximately 45 million people would take advantage of the benefit.

Initially, funds were distributed to 12.4 million state welfare cardholders and 2.1 million holders of disability cards, totalling 14.5 million people.

For those registered but not part of these two groups, the government will determine an appropriate timeline for distributing funds in the next phase of the scheme.

Digital wallet

Regarding individuals without a smartphone, Lavaron mentioned that the deadline, initially yesterday, had been postponed. He explained that the delay was necessary for the Finance Ministry to clarify registration numbers, as there were overlaps between state welfare cardholders, disability cardholders, and those who registered previously. It is estimated that around 3 million people do not own a smartphone.

Lavaron clarified that prioritising state welfare cardholders and disability cardholders does not imply a shortage of funds. The government has allocated the required budget for the project for the 2024 and 2025 fiscal years, with 186 billion baht (US$5.6 billion) earmarked for 2025.

Finance Minister Pichai Chunhavajira expects that around 40 million people will be eligible for the digital wallet programme. He noted that the number of registrants is lower than the expected 45 million partly because some individuals found it inconvenient to register, and some may not have known how to register, reported Bangkok Post.

Pichai also highlighted that from the estimated 36 million people who registered through the Tang Rat app and the 14.5 million vulnerable individuals prioritised for the programme, there are likely to be duplicate registrations. After eliminating duplicates, it is expected that around 40 million people will be eligible to receive funds from this scheme, said Lavaron.

“The government’s decision to prioritise the distribution of funds to state welfare cardholders and disability cardholders did not mean there was a shortage of funds.”

Lavaron added that the project is well-funded for both the current and upcoming fiscal years.