Digital wallet scheme may be delayed to next fiscal year

The 10,000-baht digital wallet scheme faces potential postponement until the next fiscal year starting October 1 if not implemented by next month, according to the Budget Bureau.

Bureau Director Chalermphol Pensoot stated that the details of the cash handout policy would need to be revisited once the new Cabinet is formed.

The initiative, promising 10,000 baht to up to 50 million people, is a flagship policy of the Pheu Thai Party. However, securing the necessary funding has proven challenging. Critics doubt the programme’s ability to provide the economic boost the party anticipates.

Chalermphol indicated that the most needy individuals would likely be prioritised for eligibility. This group includes around 15 million people, with approximately 14 million being state welfare cardholders and the rest comprising people with disabilities.

The funding for the scheme is expected to come from 122 billion baht allocated from the 2024 fiscal budget and 20 billion baht from the central budget. Although the money was initially scheduled for distribution in September, the final amount is still pending approval by the Ministry of Finance.

Chalermphol reassured that the government is on track to initiate the scheme by next month, as the registration process has already been completed.

“However, if the handout cannot be implemented on time, the project will be put on hold and a new budget allocation must be re-drafted if the project is to resume.”

Once the 2025 fiscal budget is enacted in October, an additional 30 million registered individuals will be eligible to receive the funds. These individuals will need to be verified to prevent duplicate payments. When the system is fully operational, the funds will be distributed through digital wallets, reported Bangkok Post.

ORIGINAL STORY: Digital wallet scheme may switch to cash to boost economy

The Budget Bureau chief confirmed that funds from the digital wallet scheme could be distributed as cash, provided the original goal to stimulate the economy is maintained. Chalermphol Pensoot stated that the distribution of 10,000 baht through the digital wallet scheme could continue, depending on the new government’s policies.

“Distributing cash instead of digital money is not an issue, as long as the original objective to stimulate the economy is maintained.”

Chalermphol also indicated that the timeline for the handout remains unchanged, with no alteration to the budget calendar. The additional budget bill for fiscal 2024 is currently awaiting royal approval.

The fiscal 2025 budget is progressing through the parliamentary process, with the second and third readings scheduled for September 4 to September 6.

Caretaker Deputy Finance Minister Julapun Amornvivat mentioned yesterday that a viable solution for the digital wallet project exists but all necessary procedures must be completed before making an official announcement.

Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council, expressed uncertainty on August 19 about whether the new administration will proceed with the 500-billion-baht digital wallet handout. He stressed the importance of implementing economic support measures, particularly for low-income earners.

Danucha pointed out that stimulus measures should be carefully timed and aligned with available resources. Initial measures can be introduced and then evaluated, considering the limited resources, reported Bangkok Post.

New Prime Minister Paetongtarn Shinawatra addressed the issue on August 18, assuring that the government would not abandon its flagship handout. She stated that the government would “study and listen to additional options” to ensure the scheme is fiscally responsible.

Her comments were in response to rumours that her father, former premier Thaksin Shinawatra, had called for the controversial handout scheme to be scrapped.